UK Financial Investments (UKFI), the organisation that oversees the taxpayers’ holdings in banks, said that corporate finance advisors would be given a fortnight to tender for work. The state-owned Northern Rank was nationalized three years ago at the height of the credit crunch. Since that time, the government has begun to take the first steps to privatize the institution.
Chief executive for the fledgling Virgin Money, Jayne-Anne Gadhia said that she expects to tell MPs she believes that the high street bank faces significant barriers still. Virgin Money announced it would hope to open 70 branches during the next five years, which could be done in one move if it acquires the 75-branch strong Northern Rock.
Other potential buyers for the financial group include NBNK Investments, which hired former Northern Rock boss Gary Hoffman last November. However, with the hire of Mr Hoffman, NBNK cannot bid on Northern Rock until November 2011. Other names include Tesco Bank and private equity company JC Flowers.
UKFI said that it is inviting expressions of interest from all corporate finance advisors that work with Northern Rock and UKFI. Northern Rock was infamously nationalised in February 2008 as customers lined around the block at branches to withdraw their money.
Last year, the Corporate financial institution was split in two as ‘good’ assets were saved under Northern Rock Plc and “bad assets” were moved in Northern Rock (Asset Management).
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