Virgin planning a take over of Northern Rock

Virgin is planning to take over Northern Rock, it has been claimed.

Richard Branson’s company is apparently in talks with a consortium of investors from the US and Middle East. This group could then buy into the bank, which has been in financial crisis since September, the Times reports.

The newspaper said Virgin would not formally bid for control but buy shares for it’s investor group, eventually planning to take over the day-day running of the business.

A source close to the negotiations told the Times: “They [Virgin] are taking it very seriously and they are credible”.

The Bank of England has been supporting Northern Rock with an emergency loan. Fund management company New Star recently estimated the loan to be approximately £13 billion.

Virgin currently offers a range of financial products including car insurance, mortgages and credit cards.

© Adfero Ltd

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