Northern Rock looks to Middle East for rescuer
The hunt for a buyer to rescue stricken bank Northern Rock could see cash-rich Middle Eastern governments approached as the bid deadline looms, it was reported today.
The British government is understood to have given Goldman Sachs, the investment bank charged with finding financing for a takeover, the all-clear to widen the search to include so-called sovereign wealth funds.
These state-owned investors have built up sizeable cash funds as the price of oil has rocketed in recent years and could provide the financing needed to take Northern Rock private, according to The Guardian.
Time is said to be running out for the British government to find a private sector solution for the crisis-hit lender.
European Union rules on state aid require the Bank of England’s £25bn (€33.3bn) loan to Northern Rock to be repaid next month.
It is thought that British Chancellor Alistair Darling has pledged to make a decision on the future of the bank by the middle of February.
