Branson odds on to take Northern Rock

! This post hasn't been updated in over a year. A lot can change in a year including my opinion and the amount of naughty words I use. There's a good chance that there's something in what's written below that someone will find objectionable. That's fine, if I tried to please everybody all of the time then I'd be a Lib Dem (remember them?) and I'm certainly not one of those. The point is, I'm not the kind of person to try and alter history in case I said something in the past that someone can use against me in the future but just remember that the person I was then isn't the person I am now nor the person I'll be in a year's time.

Richard Branson is odds on favourite to take over Northern Rock.

Shareholders will have to decide on Branson’s plan to take over the bank and rebrand it Virgin Money.  Under the deal, shareholders will be left with one third of the bank between them and the bank will keep its stock market listing.

The two biggest shareholders might not be keen on the takeover bid but the likely alternative is that the bank goes into administration meaning that they’ll most likely recieve nothing by the time the administrators have charged their horrendous fees and Crown debts – such as the Bank of England loan they were given – have been repaid.

The Virgin takeover will involve the Bank of England keeping their emergency credit line open for the first three months and Virgin refinancing £11bn of the £25bn Bank of England loan Northern Rock received so that the loan doesn’t fall foul of Federal Europe’s rules on state aid which are rigourously across the continent.  Apart from in France.  Or Germany.  Or Spain.  Or Italy ….

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One comment

  1. John Franklyn (59 comments) says:

    Will Bransonrebrand it – give it a bit of the Australian feel – “Virgin Rock” maybe 0r “Rock Branson”

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