The Virgin led consortium has been handed a boost in its bid to buy Northern Rock after rival bidder Olivant withdrew from the race. It is believed that the government’s demands for its emergency funding loans to be repaid within three years are behind Olivant’s decision not to submit a takeover plan. Northern Rock has now received £55 billion of financial assistance from the government since September – a sum that Olivant had planned to pay back over five years.
Olivant’s withdrawal leaves just two bidders in the race, with Sir Richard Branson’s Virgin led consortium now the heavy favourite. The lessened competition Virgin will face could see Northern Rock receiving a worse deal, which in turn would affect the repayments to taxpayers.
Olivant Withdraw from Bank Takeover Race
Olivant Withdraw from Bank Takeover Race
Thu, 07 Feb 2008
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