The government has told the two groups bidding for Northern Rock to improve their offers or see the troubled bank put into full public ownership, reports The Guardian.
According to reports, the Treasury has told both Sir Richard Branson's Virgin Group and the rival in-house management team that their current bids are less attractive than nationalisation, something that once appeared anathema to Gordon Brown. The BBC reported last night that Virgin has been asked to improve its bid so that it pays more for the billions of pounds of loans the government is providing to keep Northern Rock afloat. The current £1.25bn offer, made on February 4, involves a £500m rights issue and a £500m cash injection, plus Virgin Money. However, Virgin has also been told tha...
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