LONDON - Sir Richard Branson's Virgin Group is interested in taking over beleaguered bank Northern Rock, according to media reports.
Earlier reports had indicated that a number of groups including Apollo Management LP, Blackstone Group, Lone Star, J.C. Flowers & Co. and Cerberus Capital Management LP are interested in Northern Rock, which has faced a crisis following the global credit crunch.
The Times said these takeover rumors were fairly accurate. It reported that Virgin was talking to group of Middle East and U.S. investors with a view to form a consortium to takeover Northern Rock. Under the terms Northern Rock would retain its stock listing, but would be rebranded as Virgin Money.
Last month Northern Rock was helped by an emergency cash injection by the Bank of England. However this sparked a crisis causing depositors to withdraw their money from the bank.
Northern Rock shares surged over this news. They were up 0.8 percent at 260 pence in early trading valuing the bank at 1.1 billion pounds.
