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Branson To Buy Stake In Norther Rock

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Branson is an enemy to the houseprice crash and anybody else who tries to save Northern rock. Northern rock should be left to rot and the management sacked.

Boycott. Sorry.

Edited by notanewmember

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I see where the guy is coming from

virgin already has credit cards,so he's pulling off a stunt on the mortgage

shrewd move,but is it too early??

...there's too much competition on the high street for that sort of thing.

...or is he going to throw in a free mobile ,broadband and telly as a freebie??

nice idea,but get the whole of the country cabled before you try it dicky,then you might be onto a winner

Edited by oracle

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well what would he be taking over? With 'his' credit card/loans/insurance/ Virgin's just a front with a sexy brand for another finance company anyhow, so NR would disappear from the high street to be Virgin Money. NR has all but gone, he's probably only interested in the fixed assets, IE the shop fronts. Unless the BoE is prepared to write off those newly given debts of circa 13bil no one will want to buy it lock stock etc..

Despite Virgin's interest the stock only rose 5-6% today... <_<

Edited by Converted Lurker

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PR darling that's all - Branson is not Virgin - he is the brand but not the finance (eg Virgin Money = RBOS, Megastores = HMV, Media = exNTL, etc, etc)

Brought out to reassure :) don't worry NR is toast - my HUGE concern though is how this will show up on the PSBR - ie a penny in the pound for you and me to be sure

GB is a *****

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Branson is obviously pleased with himself over his new acquisition:

I have pulled together a heavy-hitting consortium that we believe has not only the knowledge and expertise but the financial clout to make a once great British institution great again

44173291bransonap203jpgbq0.gif

Now call me old fashioned, but the phrase "Great British Institution" conjures up images of HP sauce, Royal Mail, Bangers & Mash and the NHS. Have I missed something about Northern Rock that everybody else can see?

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I thought Branson would come sniffing at the thought of moving into a situation where there is government support (or in this case BoE support). Hmm.. Virgin BTL Mortgages courtesy of Merv.

This week there were some funny pics in the papers this week of Branson dangling from a building with split trousers looking a bit shaken, when a bunjee jump publicity stunt went badly wrong and he crashed into building. :lol:

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Guest barebear

Branson bought NTL which is the biggest pile of $hite anywhere,he must have know the cable industry never made any real money only lies on nasdaq.He cant get shot of it now but maybe he's just turning into one big asset stripper.The whole virgin empire can absorb these pigs in pokes but why does he bother.The cable industry will never ever make money and thats coming from someone who's worked in it since 1993 however if you manipulate figures enough and have your own bank as well ..... who knows ??

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It seems to me that it is all about the deal Branson can close. The government can't let NRK collapse - so, they know they need to offer some sweeteners. The only question is this:

Can Branson negotiate sufficient sweeteners to make the deal viable?

I suspect he might - the shit has well-and-truly hit the fan, and politicians are looking for any exit route.

I'd say his timing is excellent, and he is maximising the value of his celebrity status.

One question remains... Can Branson accurately value NRK and mitigate the risk at the taxpayers' expense sufficiently to make this a viable business?

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Can Branson negotiate sufficient sweeteners to make the deal viable?

Christ, I'd love to know that the sweeteners would be for buying a bank that's made very risky loans at a time when very risky loans are like nuclear waste!

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It seems to me that it is all about the deal Branson can close. The government can't let NRK collapse - so, they know they need to offer some sweeteners. The only question is this:

Can Branson negotiate sufficient sweeteners to make the deal viable?

I suspect he might - the shit has well-and-truly hit the fan, and politicians are looking for any exit route.

I'd say his timing is excellent, and he is maximising the value of his celebrity status.

One question remains... Can Branson accurately value NRK and mitigate the risk at the taxpayers' expense sufficiently to make this a viable business?

Probable some kind of support to keep those people in North East in employment.

Would sweeteners break EU rules ?

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Guest grumpy-old-man

anyone know what NR share price ended up at then on Friday please ?

edited: ok, so I was being lazy..................£2.73 :P

Edited by grumpy-old-man

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PR darling that's all - Branson is not Virgin - he is the brand but not the finance (eg Virgin Money = RBOS, Megastores = HMV, Media = exNTL, etc, etc)

This is the essence of the value of his involvement. The public has sympathy for the Virgin brand and will welcome it "rescuing" NRK. The same people would be laughing if RBS or HBOS tried to revive this shameful excuse for a bank.

When his purchase quietly collapses ("The books showed that NRK was in deeper s*it than we imagined") then he is still the hero of the north east for trying to save the cripple of British banking sector.

He got great publicity for trying to buy Concorde from BA. Everyone loved him for it. Would he have ever succeeded in flying them in Virgin colours? I doubt it.

I really like Richard Branson but there are some lost causes that should be left to rot.

More good PR for Virgin whatever happens.

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Branson has always liked extreme sports, perhaps cliff diving will be a big attraction for him at NR

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http://business.timesonline.co.uk/tol/busi...icle2651539.ece

October 14, 2007

There’s a chance Northern Rock is worth zero

John Waples, Business Editor

AS much as I would like to see a quick solution to Northern Rock’s plight, I fear such a goal will be impossible. The farce surrounding the rescue of the stricken bank is doing untold damage to Britain’s reputation abroad, but there are now too many parties with entrenched interests to allow a quick deal to progress.

Sir Richard Branson’s Virgin Group is the latest potential saviour, but the tough talking hasn’t even started. Branson’s proposal involves a huge dilution of existing Northern investors to under 50% of the company’s equity – and we don’t even know what value he is putting on the shares yet.

Some of Britain’s smartest hedge funds have taken diametrically opposed views of the bank’s value. And there is a strong possibility that despite the takeover speculation that has pumped up the price to 273p, its real value could be close to zero. If an offer is made, an almighty tussle will break out between different shareholder factions.

In the end Northern might even be left on the shelf, close itself to new business and put its mortgage book into run-off. This would allow it to slowly repay the £13 billion government loan it has so far been handed. This week it is the Northern Rock board’s turn to go before the Treasury committee.

More fingers will get pointed, but what we are discovering is Northern’s collapse is not down to individual failing but a systemic one. And at the heart of it is the way the Bank of England, the Financial Services Authority and the Treasury have failed to get a grip on a problem that is exposing them to ever greater charges of incompetence every day this continues.

Wow the real value of the shares could be zero. Some discount!

Edited by Ash4781

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Wow the real value of the shares could be zero. Some discount!

49.9% of the enlarged Virgin Money may be their best offer, and it is significantly more than nothing.

NRK shares have to be suspended on Monday, surely?

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