Flowers quits race for Northern Rock by Finance News Bulletin

Flowers quits race for Northern Rock - Published:12/12/07

All times are London time look for News in the FTcom siteSearchSearch Quotes in the FTcom siteQuotesCOMPANIES Financial servicesBreadcrumb trail direction-finding:FT house > Companies > By sector > Financial servicesServicesJC Flowers, the private equity group has walked away from the offer auction for Northern Rock, the suffering bankThe US group, which submitted a revised suggestion last week, is understood to have sent letters to Northern Rock and to the coffers last night saying that it could not give a revised offer that would both provide value to shareholders and please government supplies on the sale of Northern RockThe JC Flowers proposal, which future repaying £15bn of Bank of England funding, would have only given shareholders a nominal amount even though their support would be needed to get the bid throughIt is understood that during meetings with Northern Rock this week, JC Flowers concluded that it did not see how it could meet its own financial hurdle tax while satisfying the government and shareholdersJC plants has now made it clear it will not hold any more meetings or do further work on a revised offer “unless the parameters change”Northern Rock is also expected to take delivery of a revised proposal today from Olivant, the private evenhandedness group led by Luqman Arnold, a former Abbey National chief executive, which will see him parachute new organization into the collection Cerberus, the private equity collection, is still consideration to be interestedThe bank has borrowed about £25bn from the Bank of England and it is thought to be bearing in mind a number of different fallback options, including going into sprint off” – not taking on new business – should its sale failThis prospect includes running down its mortgage book over a era of time and selling certain assets to shrink its balance sheetThis form of winding down the corporation would not engage Northern Rock’s being nationalised or put into administrationIt could also allow Northern astound to take advantage of financing letters being lined up by a number of banksNorthern Rock could have a loan of against some mortgage assets and potentially pay back part of the Bank of England loan and the rest over a era of yearsThe Virgin consortium still has to finalise financing as it tactics to pay back more than £11bn of store of England fundingHowever a person close to the situation supposed financing was likely to be difficult and commercial banks providing financing could require better security to set against the loanThe commercial banks are responsibility due diligence and are now conducting detailed deliberations about the financing including the type of collateral which could be second-hand to set against a loanThe amount borrowed from the Bank of England has increased by £600m–£650m since last week, of which half was due to savers withdrawing their money from the store The rate of investments withdrawn from the bank has slowed in the past fortnight since the Virgin group was named as favored bidderNorthern Rock, plans to give its 1m savers a Christmas bonus, rising the savings rate it pays by 05 per cent in December and JanuaryCopyright The Financial Times Limited 2007World View: astound response risks undermining London - Dec-06Warning of Rock evils tarnishing London - Dec-06Olivant puts its marker on astound - Dec-05Brussels approves astound rescue aid - Dec-05In deepness: Northern Rock - Sep-17JC Flowers attempts to reopen N Rock bid - Dec-04More from this sectorMaverick porcelain Payment Profiles: Chinapay, Providing Online sum Solutions for Chinese Banks Maverick China Research12/3/2007$1000Maverick porcelain Payment Profiles: 99Bill, Hot Out of the Gates, but Sustainable Maverick porcelain Research12/3/2007$1000BlogsBrussels BlogCharles PretzlikClive CrookDear LucyEconomists’ ForumEnergy FilterJohn GapperGideon RachmanTech BlogThe in secret EconomistWestminster BlogWillem Buiter’s MavereconRegional pagesLatin American agendaChinaIndiaBrusselsInteractivePodcastsDebates & pollsAsk the expertMarkets Q&AJobs and classifiedsBusiness for saleContracts & tendersJobs look for Type your search criteria below:* Minimum delay 15 minutesAll era are London timeFT HomeSite mapContact usHelpAdvertise with the FTMedia centreStudent offersFT ConferencesFT SyndicationCorporate subscriptionsFT GroupPartner sites: Chinese FTcomLes EchosFT DeutschlandExpansionInvestors ChronicleExec-Appointmentscom© Copyright The Financial Times Ltd 2007 "FT" and "Financial era" are trademarks of The Financial.

Flowers pulls out of Rock auction - Published:07/12/07

All occasions are London occasion Search News in the FTcom siteSearchSearch Quotes in the FTcom siteQuotesCOMPANIES monetary servicesBreadcrumb trail navigation:FT Home > Companies > By sector > Financial servicesServicesJC Flowers, the private equity group has walked away from the offer auction for Northern Rock, the suffering bankThe US group, which submitted a revised suggestion last week, is understood to have sent letters to Northern astound and to the Treasury last night saying that it could not give a revised offer that would both provide value to shareholders and please government supplies on the sale of Northern RockThe JC Flowers proposal, which proposed repaying £15bn of Bank of England financial support, would have only given shareholders a nominal amount even though their support would be needed to get the bid throughIt is unspoken that during meetings with Northern Rock this week, JC Flowers concluded that it did not see how it could meet its own financial obstacle rates while satisfying the government and shareholdersJC Flowers has now made it obvious it will not hold any more meetings or do further work on a revised offer “unless the parameters change”Northern Rock is also expected to receive a revised suggestion today from Olivant, the private equity collection led by Luqman Arnold, a former Abbey National chief decision-making, which will see him parachute new management into the collection Cerberus, the private equity collection, is still thought to be interestedThe bank has on loan about £25bn from the Bank of England and it is thought to be considering a figure of different fallback options, including going into “run rotten – not taking on new business – should its sale failThis prospect includes running down its mortgage book over a period of occasion and selling certain assets to shrink its balance sheetThis form of winding down the corporation would not engage Northern Rock’s being nationalised or put into administrationIt could also allow Northern Rock to take benefit of financing packages being wrinkled up by a number of banksNorthern Rock could borrow against some mortgage possessions and potentially pay back part of the Bank of England loan and the relax over a period of yearsThe Virgin consortium still has to finalise financing as it tactics to pay back more than £11bn of Bank of England fundingHowever a person shut to the situation supposed financing was likely to be difficult and profitable banks providing financing could require better collateral to set against the loanThe commercial banks are responsibility due diligence and are now conducting detailed discussions about the financing counting the kind of collateral which could be used to set against a loanThe amount borrowed from the Bank of England has increased by £600m–£650m since last week, of which semi was due to savers withdrawing their cash from the bank It said the speed of savings withdrawn from the bank had slowed in the past fortnight since the Virgin group was named as preferred bidderNorthern Rock, tactics to give its 1m savers a Christmas bonus, rising the savings rate it pays by 500 foundation points in December and JanuaryCopyright The Financial Times Limited 2007earth View: Rock response risks undermining London - Dec-06Warning of astound problems tarnishing London - Dec-06Olivant puts its indicator on Rock - Dec-05Brussels approves Rock rescue aid - Dec-05In depth: Northern Rock - Sep-17JC plants attempts to revive N Rock bid - Dec-04More from this sectorMaverick China sum Profiles: 99Bill, Hot Out of the Gates, but Sustainable Maverick China Research12/3/2007$1000Maverick China Payment Profiles: Chinapay, as long as Online Payment Solutions for Chinese Banks nonconformist China Research12/3/2007$1000BlogsBrussels BlogCharles PretzlikClive CrookDear LucyEconomists’ ForumEnergy FilterJohn GapperGideon RachmanTech BlogThe in secret EconomistWestminster BlogWillem Buiter’s MavereconRegional pagesLatin American agendaChinaIndiaBrusselsInteractivePodcastsDebates & pollsAsk the expertMarkets Q&AJobs and classifiedsBusiness for saleContracts & tendersJobs Search Type your look for criteria below:* Minimum holdup 15 minutesAll times are London timeFT HomeSite mapContact usHelpAdvertise with the FTMedia centreStudent offersFT ConferencesFT SyndicationCorporate subscriptionsFT GroupPartner sites: Chinese FTcomLes EchosFT DeutschlandExpansionInvestors ChronicleExec-Appointmentscom© Copyright The Financial Times Ltd 2007 "FT" and "monetary Times" are trademarks of.

Darling asks Rock to consider rival bids - Published:04/12/07

All era are London time Search News in the FTcom siteSearchSearch speech marks in the FTcom sitespeech marksCOMPANIES Financial servicesBreadcrumb trail navigation:FT Home > Companies > By sector > Financial servicesServicesAlistair Darling is hoping Northern Rock’s prospect can be decided before Christmas, as his officials give confidence the troubled bank to look beyond Virgin, its favored bidder, at rival offersThe chancellor expects a bidding war to smash out in the coming days, which he believes will help him secure the best likely outcome for the taxpayer, at present backing loans of more than £22bn to the bankLast week it seemed the contest was over after Northern Rock selected a group led by Virgin as preferred bidderHowever, in the past three existence, the stakes have been raised, as it emerged that Cerberus, the confidential equity collection, submitted a revised proposal on Friday, as did private equity group JC FlowersIt is understood Mr sweetheart now deems the revised JC Flowers offer an accepted bid”, because it meets the Treasury’s principles for the sale, aimed at getting better the huge community loan advanced to Northern RockThe JC Flowers bid offers to repay £15bn of the taxpayer loan frank, and the remainder in the next three years at a profitable rate of interest“Clearly it makes sense to have more than one paying attention party, from the taxpayer point of view and also from the point of view of Northern Rock shareholders,” said one official close to the dealAlthough Mr Darling’s officials be adamant he is not setting a time-table, those working on the deal say the chancellor hopes Northern Rock can choose a bidder before Christmas, drawing a line under a embarrassing episode“The government would like this to be resolved rapidly but we require to make sure we get the right deal,” said a orator The Treasury, as the Rock’s biggest creditor, has a veto on any deal and could yet nationalise the bankJC Flowers, which had talked about taking Northern astound private, indicated it would be flexible about whether the bank would stay a community companyOlivant, the private equity group headed by Luqman Arnold, former leader executive of Abbey National, is due to lodge its full proposal this weekMr Arnold has the support of Northern Rock’s biggest shareholders counting hedge funds SRM and RAB which must vote any contract throughNorthern Rock saw a large loss of deposits in mid-November and the decision to name Virgin as favored bidder halted the rush of withdrawalsOne person familiar with the situation suggested that identification a preferred bidder might have given the Northern astound board more time to consider other bidsKey to any bid’s achievement is receiving financing to repay part of Northern Rock’s £22bn of debt payable to the Bank of EnglandVirgin, which is hoping to get financing from regal Bank of Scotland, Citigroup and Deutsche Bank, has about three weeks to safe financing commitmentsDeutsche Bank the past rejected suggestions it was about to walk away from the Virgin deal Copyright The Financial era Limited 2007In depth: Northern astound - Sep-17JC Flowers makes new ‘flexible’ astound bid - Nov-30Contrasting font battle on Rock face - Nov-30Lex: Valuing Northern Rock - Nov-30Rock seeks completely financed plan from Olivant - Nov-28Sir Brian adds financial power to Virgin quest - Nov-28More from this sectorBlogsBrussels BlogCharles PretzlikClive CrookDear LucyEconomists’ ForumEnergy FilterJohn GapperGideon RachmanTech BlogThe in secret EconomistWestminster BlogWillem Buiter’s MavereconRegional pagesLatin American agendaChinaIndiaBrusselsInteractivePodcastsDebates & pollsAsk the expertMarkets Q&AJobs and classifiedsBusiness for saleContracts & tendersJobs Search Type your look for criteria below:* Minimum delay 15 minutesAll era are London timeFT HomeSite mapContact usHelpAdvertise with the FTMedia centreStudent offersFT ConferencesFT investigate CentreFT SyndicationCorporate subscriptionsFT GroupPartner sites: Chinese FTcomLes EchosFT DeutschlandExpansionInvestors ChronicleExec-Appointmentscom© Copyright The Financial era Ltd 2007 "FT" and "Financial era" are trademarks of.

Flowers quits race for Northern Rock by Finance News Bulletin

Published: 12/12/07

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Flowers quits race for Northern Rock - Published:12/12/07

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Darling asks Rock to consider rival bids - Published:04/12/07