Virgin Looks To Takeover Northern Rock

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Richard Branson is everywhere, all the time. Here he is, leading takeover talks with troubled British Lender Northern Rock. The Virgin group plans on taking over Northern Rock by assuming their rather massive obligations.

Virgin, which wants to re-brand Northern Rock as part of Virgin Money business, says its consortium would repay 11 billion pounds ($22.7 billion) of the 25 billion pounds ($50 billion) the Bank of England has loaned to Northern Rock on the completion of the transaction.

The remainder of the money would be paid “in due course,” Northern Rock said in an announcement to the London Stock Exchange.

The Virgin Consortium also promised additional funding facilities to support the business.

The news that the company is interested in Northern Rock has done a lot to stabilize share prices, but analysts caution anyone about jumping in too soon. There are a number of scenarios in which current stock holders could lose money.

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