Troubled mortgage lender Northern Rock saw its share price fall by 25 per cent at one point on Tuesday, as its problems persist. By the end of the day, share prices had recovered slightly, though still fell by 17 per cent as takeover talks remain unresolved.
Since mid-September, the bank has now borrowed around £25 billion from the Bank of England in emergency funding, though with each separate loan guaranteed for just six months, whichever party is successful in their bid to take over the bank will face a hectic few months.
Cerberus and a Virgin-led consortium are interested in acquiring the bank, as are JC Flowers, who reportedly submitted an offer to Northern Rock shareholders this week.
Should a takeover fail to happen, it is a distinct possibility that the government may nationalise the bank.
Troubled Bank Sees Shares Fall Again
Troubled Bank Sees Shares Fall Again
Mon, 26 Nov 2007
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