Friday, Dec 07, 2007
Nationalisation for Northern Rock!?
Telegraph: Northern Rock: FLowers Quits Race
Nationalisation looms larger as JC Flowers quits contest to buy stricken lender, and Virgin battles to secure £11bn loan
US private equity firm JC Flowers has walked away from the competition to buy Northern Rock, raising the prospect that the Government will have to consider nationalising the Newcastle-based lender.
In letters sent to the stricken bank and to the Treasury yesterday afternoon, Flowers is understood to have told Northern Rock's chairman, Bryan Sanderson, and John Kingman at the Treasury that it could not construct a deal meeting its own profitability criteria that would be acceptable to the Government.
Posted by matt @ 11:08 AM (176 views) Add Comment
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