Richard Branson Interested In Northern Rock

A group of businesses led by Sir Richard Branson’s Virgin Group has approached Northern Rock about a possible takeover in light of their recent troubles. Virgin is one of many suitors eyeing a move for crisis-hit Northern Rock, who saw their shares leap 5% on the hopeful news.

Virgin is looking to take a controlling stake in the bank with the backing of investors in the Middle East and the US. The tie-up could see Northern Rock’s operations merge with the firm’s Virgin Money business, which already offers mortgages, credit cards and insurance services.

Northern Rock hit a crisis last month when it had to borrow £11bn from the Bank of England’s emergency fund. Since then, it’s not only been Virgin who have had an interest in the bank. Earlier this month, it emerged that New York-based private equity firm JC Flowers was planning to place a £10bn bid for the bank, with Cerberus (private equity) also interested in the firm’s assets.

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