SRM Global Master Fund Partnership, one of Northern Rock's biggest shareholders, said yesterday it would ask the authorities to make the bank reveal to investors details of bid proposals it has received, The Independent reports.
SRM's founder, Jon Wood, said: "We are approaching the Takeover Panel to clarify with them what should and shouldn't be shown to shareholders. If there are bids for this company, we should see them."
Northern Rock's shares were repeatedly suspended yesterday as they plunged by up to 42%. The sell-off came as investors reacted to the Chancellor's comments the day before that he would "veto" any bid for the bank that was not acceptable to the Government.
GOVERNMENT BONDS ROSE IN THE UK, Europe and American as fears that the credit crisis is deepening prompted a flight to quality by investors, The Telegraph reports.
The moves come after a day in which US mortgage financier Freddie Mac sparked concern that the troubles in the US sub-prime market may be spreading to more mainstream American housing by reporting a $2bn (£970m) loss and revealing it may need to raise more money.
THE FEDERAL RESERVE SLASHED its forecast for the growth of the American economy last night, as it took account of tightening mortgage and housing markets and rising oil prices, The Times reports.
The Dow Jones industrial average fell in early trading – although it closed up last night, above the 13,000-point watershed – and the euro reached a fresh high against the dollar after the minutes of the Fed’s October meeting showed that the US central bank predicted that growth next year would be between 1.8% and 2.5%, sharply down from a 2.5% to 2.75% range forecast in June.
Confidence was also knocked by Freddie Mac, America’s second-biggest provider of mortgage financing, announcing its largest quarterly loss on the back of $4.8bn of bad debts and write-downs in the third quarter.
OIL PRICES NUDGED $100 a barrel today after surging to a record high as Asian markets plunged on the back of the weakening dollar and the deteriorating American economy, The Times reports.
US light crude rose to $99.29 a barrel, a 39% rise in the price of fuel since the end of August, while London Brent crude rose 50 cents to $95.99 as traders reacted to the prospect of tightening oil supplies in colder weather.
Gold opened up, from $793 to $804.75 an ounce.
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