A consortium headed by Welsh entrepreneur Alfred Gooding has met the Treasury to discuss whether it should re-enter the auction process for Northern Rock. Financial Times
The Tyne consortium, which includes Five Mile Capital Partners and Olympus Partners, the US private equity firms, pulled out of the auction this month because its US backers were concerned about the UK housing market.
However, it is understood that the consortium, which has never been viewed as a frontrunner, is still interested in Northern Rock and is prepared to consider injecting £1bn cash.
Northern Rock is considering two rival bid proposals from Olivant, the private equity group, and a consortium led by Virgin Group. The amount of equity that Olivant is proposing to inject – which stands at between £600m to £800m – is not thought to be enough by Northern Rock and its advisers.
Virgin is proposing to inject £1.3bn. However, people close to the situation suggest that £1.4bn could be needed.
Olivant has indicated that none of the regulators has flagged any issues with the size of its proposed equity injection.