Virgin 'eyeing Northern Rock stake'

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

It is understood that the gyms, phones and airline group is looking to take a controlling stake in the troubled bank with the backing of investors in the Middle East and the United States, according to The Times newspaper.

A tie-up could see the mortgage lender's operations merged with the firm's Virgin Money business, which already offers mortgages, credit cards and insurance services.

Virgin is believed to have already met the Newcastle-based bank's management and is currently in talks with possible investors, The Times said.

The company is just one of a number of suitors said to be circling Northern Rock, which has seen its share price dive after it was forced to seek emergency funding from the Bank of England last month.

The news sparked the first run on a UK bank for 150 years, as customers rushed to withdraw their funds to safeguard their savings.

Earlier this month, it emerged that New York-based private equity firm JC Flowers had raised £15 billion to bid for the bank, while private equity firm Cerberus is also understood to be interested in the the firm's assets.

Other names in the frame have included Blackstone and Apax, although no formal offers have yet been tabled.

Banking giant Citi has also agreed to be on hand to lend Northern Rock some £10 billion to help ease its funding crisis.

It is understood that Virgin is putting together a finance package that could involve the loan from Citi, and would seek to take control of the group through the issuing of new shares. It will not make a formal offer for the bank, the report said.