Virgin Group has revealed a consortium with a proposal to take over Northern Rock adding itself to a growing list of interested parties in the troubled lender.
If a deal is agreed upon, the consortium will maintain Northern Rock’s listing, to retain the business in its entirety, rather than seeking a break up.
It is proposed that the chief executive of the combined business will be Jayne-Anne Gadhia, current chief executive of Virgin Money, and previously managing director of RBS Mortgages.
As part of the proposal, Virgin Money will be transferred to Northern Rock in return for equity and Northern Rock will, after completion of that transaction, be renamed and re-branded Virgin Money.
The board consists of Virgin Group, AIG Financial Products Corp, WL Ross & Co LLC, Toscafund Asset Management LLP and First Eastern Investment Group.
