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News and Commentary On Newcastle United Football Club By Ed Harrison, A Proud Exiled Geordie And Lifelong Fan

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Two Bidders For Northern Rock

12:10 pm, Thursday, December 20th, 2007 by Ed Harrison · 14 Comments

Investment bank Goldman Sachs has been called in to come up with a finance package that would allow a private sector bidder to take over Northern Rock. There are now two rival bidders for the high street bank, one is led by Sir Richard Branson’s Virgin Group and the other by investment company Olivant.

virgin.png

Could this emblem be on Newcastle United shirts next season – maybe

But both bidders seem to be struggling to raise the finance needed to buy out the high-street bank.

Because of these difficulties Goldman Sachs – the Government’s advisers in the sale – have been asked to assemble backers and stave off the need for the Treasury to nationalize Northern Rock. Reports today suggest that Goldman Sachs has been given until mid-January to come up with a solution.

Virgin’s consortium was named as Northern Rock’s preferred bidder three weeks ago, but Olivant’s plans seem to be more popular with the shareholders. We know if Virgin wins the deal they will change the name to Virgin Bank, but we currently have no information on Olivant’s plans, which may be to keep the bank’s name unchanged. But with their recent troubles, it would probably be best to change the name of the bank, once any takeover is finalized.

The Virgin team would pump £1.3B into the ailing business in return for a 55% stake. On the other hand Olivant would not make a formal offer for the group, but take up a minority stake and bring in a heavyweight management team to quickly turn around the company’s fortunes.

Adam Applegarth, who oversaw the aggressive growth of the bank to become the UK’s fifth-biggest mortgage lender, stepped down as chief executive a week ago today.

So we’ll just have to wait and see if the sponsor for Newcastle United next season will have a different name, which will then be on our shirts. We’ll keep you updated on negotiations as they occur.

Comments welcome.



Tags: Newcastle News





14 responses so far ↓

  • 1 mark // Dec 20, 2007 at 1:03 PM

    Ricky B will pull the plug on sponsorship deals after the current deal is up if it goes ahead.

  • 2 Leo // Dec 20, 2007 at 1:05 PM

    i dont mind having virgin on our shirts for sponsors, everyone was a virgin one time or another haha

  • 3 ToonKing // Dec 20, 2007 at 1:13 PM

    damn, the Northern Rock logo is way cooler than Virgin……….

  • 4 Valle // Dec 20, 2007 at 1:19 PM

    Lets get an Ale or a Lager as logo again =D

  • 5 Southside Jordy // Dec 20, 2007 at 2:55 PM

    You can see the jokes coming hay!!

  • 6 Darryl M // Dec 20, 2007 at 4:02 PM

    Could be a blessing in Disguise… Newcastle are the Virgins of the Premier League.

  • 7 big pea ov the weab // Dec 20, 2007 at 8:21 PM

    f**k the logo get the team sorted first

  • 8 Tom_Toon // Dec 20, 2007 at 8:50 PM

    I bet emre is still a virgin, ahahahah :)

  • 9 ToonKing // Dec 20, 2007 at 9:21 PM

    i bet Viduka is one :) lol .

  • 10 Leo // Dec 20, 2007 at 9:26 PM

    why dont u like emre? or you think he is a virgin because he looks like a baby with long hair?

  • 11 Tom_Toon // Dec 20, 2007 at 9:48 PM

    g

  • 12 Tom_Toon // Dec 20, 2007 at 9:49 PM

    The latter, emre is my favourite player for the toon :)

  • 13 Dingo // Dec 20, 2007 at 11:13 PM

    Bring back the Brown Ale logo….. we did well under that~!

  • 14 Tom_Toon // Dec 20, 2007 at 11:15 PM

    g1




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