Top bank called in to help Northern Rock sale
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, it emerged today.
The two rival bidders, one led by Sir Richard Branson’s Virgin Group and the other by investment company Olivant, are struggling to raise the finance needed to buy out the troubled high-street bank.
Difficulties in finding finance are threatening the deal, so Goldman Sachs - the Government’s advisers in the sale – has been asked to assemble backers and stave off the need for the Treasury to nationalise the Rock.
Goldman Sachs has been given until mid-January to come up with a solution, sources said.
Virgin’s consortium was named as Northern Rock’s preferred bidder three weeks ago, but Olivant’s plans are more popular with shareholders.
