Virgin Group Rock-on in the mortgage lending industry
Virgin Group has been named as the preferred bidder for troubled mortgage lender Northern Rock, confirming a weekend of speculation.
The Branson consortium comprises Virgin Group, WL Ross & Co, Toscafund Asset Management LLP and First Eastern Investment Group.
Some £1.3 billion has been pledged, in addition to the Virgin Money Business, with further fundraising split between the Virgin Consortium and existing share holders on a pro rata basis of 25 pence per share, reports the Mortgage Introducer.
Reuters reported difficulties in valuing the lenders' stock in the run up to the announcement this morning.
David Morrison of MF Global said: "I don't know the true value of this stock, I don't know who does."
Northern Rock topped the FTSE 100 risers board at 35 points as traders short-covered stock amid speculation over responses to the takeover.
This is some of the first positive news about the mortgage lender, which has been dogged with controversy over the last week following the revelation that the government has pledged over £24 billion in emergency funding.
The Branson consortium comprises Virgin Group, WL Ross & Co, Toscafund Asset Management LLP and First Eastern Investment Group.
Some £1.3 billion has been pledged, in addition to the Virgin Money Business, with further fundraising split between the Virgin Consortium and existing share holders on a pro rata basis of 25 pence per share, reports the Mortgage Introducer.
Reuters reported difficulties in valuing the lenders' stock in the run up to the announcement this morning.
David Morrison of MF Global said: "I don't know the true value of this stock, I don't know who does."
Northern Rock topped the FTSE 100 risers board at 35 points as traders short-covered stock amid speculation over responses to the takeover.
This is some of the first positive news about the mortgage lender, which has been dogged with controversy over the last week following the revelation that the government has pledged over £24 billion in emergency funding.
