Olivant is expected to lodge its bid proposal today to take over management of Northern Rock, the stricken bank. Financial Times, Daily Telegraph
The private equity group run by Luqman Arnold, the former chief executive of Abbey National, was last night hammering out final details with Lazard, its advisers, and is expected to sign off the plan this morning.
Lehman Brothers, the US investment bank, is understood to be acting as broker to Olivant and the plan has already won backing from the Newcastle-based bank’s two biggest shareholders.
Meanwhile the Welsh entrepreneur bidding for Northern Rock was yesterday thought to be preparing to pull out of the auction of the troubled Tyneside-based bank.
Alfred Gooding had submitted a proposal to Northern Rock as part of a consortium with Five Mile Capital Partners and Olympus Partners, the American private equity firms, but is understood to have become frustrated by the complex auction process.