October 15, 2007

Virgin and Northern Rock deal struck?

The troubled bank Northern Rock has been the subject of many takeover speculations, but there has been only one serious enough to be taken as being a solid claim, that is the Richard Branson bid. It seems that he believes the Northern Rock group could be a nice addition to the Virgin Money business.

The whole Northern Rock branding would disappear and replaced by the Virgin Logos. This would be great news for the company’s 6,000 staff that has been on edge since the troubles started, should the deal go ahead this would almost certainly guarantee their jobs.

It would not just be Virgin investing as Richard Branson has put a consortium together which includes investors from Asia and the US. The plan is just to take a majority stake in the business and not completely take it over.

Source [BBC News]