any comments, thoughts, on this stock.

Northern Rock shareholder sees private solution to crisis




NEWCASTLE (Thomson Financial) - A leading shareholder in Northern Rock today
predicted that a private rescuer for the stricken mortgage lender will be found,
downplaying mounting concerns the bank could be nationalised.
Addressing a shareholder meeting in Newcastle, Jon Wood of hedge fund SRM
Global said he believed there would be a "private solution" to Northern Rock's
financial crisis.
SRM and rival hedge fund RAB Capital have built up an 18 pct stake in
Northern Rock between them, and are asking fellow shareholders to support
proposals which would limit management's ability to sell the bank without
consulting investors.
The hedge funds are concerned that otherwise management may be pressurised
by the government into selling too cheaply.
However, there are fears that if the measures are approved, the government
could respond by nationalising the lender and selling off its assets in an
effort to recoup a 25 bln stg emergency loan from the Bank of England.
At the weekend, it was reported that the government has already lined up
former Lloyd's of London chief Ron Sandler to chair Northern Rock if it decides
to take the group into public ownership.
RAB Capital chief executive Philip Richards today said nationalisation would
be a "slow death" for Northern Rock.
Northern Rock is in talks with two potential private sector buyers -- a
consortium fronted by Sir Richard Branson's Virgin Group, and Olivant Advisers,
a buyout firm led by former Abbey chief executive Luqman Arnold -- but both are
believed to be struggling to raise the finance needed to start paying off the
lender's BoE debt.
Northern Rock chairman Bryan Sanderson today stressed that the bank is still
hopeful of a finding a private buyer.
"We are looking for a private sector solution. Whether the group is
nationalised or not is a matter for the government over which we have no
control," he told the shareholder meeting.
Separately, Northern Rock chief executive Andy Kuipers said there were signs
the bank is stabilising, with deposit outflows in December falling to their
slowest pace since the group's crisis began in mid-September.
Northern Rock, once the UK's eighth-biggest bank by market value, was
crippled by funding problems in September when rising defaults against US
sub-prime mortgages prompted banks to stop lending to each other.
That left the UK lender, which had relied heavily on borrowing in the
wholesale markets to fund itself, with no option but to seek emergency support
from the BoE.

I wish I had his insight :-)


UK's Darling tells Cabinet Northern Rock business model 'had no plan B' UPDATE




(Adds quotes)
LONDON (Thomson Financial) - Chancellor Alistair Darling reminded his
Cabinet colleagues today that the situation at troubled lender Northern Rock PLC
arose because the bank's business model had "no plan B" if it ran into
difficulty, said Prime Minister Gordon Brown's spokesman Michael Ellam.
Northern Rock was discussed in the context of the broader turbulence shaking
the global economy, Ellam said, repeating the government's assertion that all
options remain on the table, including nationalisation.
The bank's shareholders meet today to vote on measures which would limit its
ability to sell itself off, amid growing fears the group will be nationalised if
a private takeover does not materialise.
The proposals have been tabled by hedge fund shareholders SRM Global and RAB
Capital, who have built up an 18 pct stake in Northern Rock between them, and
are worried that the bank's management could be pressurised by the government
into selling at a price they consider too low.
Last month, Northern Rock urged investors to vote against the proposals,
arguing that they would "materially restrict" its efforts to find a rescuer.
Ellam declined to comment on the government's view of the hedge funds'
actions.
"I think the prime minister's general position in relation to Northern Rock,
as he's made very clear, is that the priorities for the government are to ensure
that we protect the interests of taxpayers, that we protect the interests of
depositors and savers in the economy and that we take action in order to promote
wider financial stability," he said.
The government is anxious to ensure that a 25 bln stg emergency loan to
Northern Rock from the Bank of England is paid back, and is thought likely to
sell off parts of the lender in order to recoup the money if it nationalises the
group.
Two private sector bidders -- a consortium fronted by Sir Richard Branson's
Virgin Group and Olivant Advisers, a buyout firm led by former Abbey boss Luqman
Arnold -- are in talks with Northern Rock, but there are fears they will be
unable to raise the money needed to start paying off the BoE loan.
TFN.newsdesk@thomson.com
fp/ajb/fp/jlc

Northern Rock continuing search for private buyer UPDATE




(Recasts, adds detail, share price)
NEWCASTLE (Thomson Financial) - Northern Rock chairman Bryan Sanderson said
the stricken lender expects to complete a strategic review by mid-February, and
is continuing to look for a private buyer, despite growing speculation it will
be nationalised.
"We are looking for a private sector solution. Whether the group is
nationalised or not is a matter for the government over which we have no
control," Sanderson told a shareholder meeting in Newcastle today.
Sanderson's comments came as Northern Rock shareholders prepared to vote on
proposals, tabled by the bank's two biggest shareholders, which would limit
management's ability to sell the group without consulting investors.
The measures were drawn up by hedge funds RAB Capital and SRM Global, who
have built up an 18 pct stake in the bank between them, and are anxious that
management could be pressurised by the government into selling too cheaply.
Northern Rock's board has urged shareholders to vote against the proposals.
There are fears that if they are approved, the government could respond by
nationalising the lender and selling off its assets in an effort to recoup a 25
bln stg emergency loan from the Bank of England.
Northern Rock is in talks with two potential private sector buyers -- a
consortium fronted by Sir Richard Branson's Virgin Group, and Olivant Advisers,
a buyout firm led by former Abbey chief executive Luqman Arnold -- but both are
believed to be struggling to raise the finance needed to start paying off the
lender's BoE debt.
At the weekend, it was reported that the government has already lined up
former Lloyd's of London chief Ron Sandler to chair Northern Rock if it decides
to take the group into public ownership.
However, the Financial Times reported today that Prime Minister Gordon Brown
would not be forced into making a snap decision on whether to nationalise
Northern Rock if the bank's other shareholders back SRM and RAB Capital today.
Addressing today's meeting, SRM founder Jon Wood said he also believed there
would be a "private solution" to Northern Rock's crisis, while RAB Capital chief
executive Philip Richards warned that nationalisation would spell a "slow death"
for Northern Rock.
Separately, Northern Rock chief executive Andy Kuipers said there were signs
the bank is stabilising, with deposit outflows in December falling to their
slowest pace since the group's crisis began in mid-September.
Northern Rock, once the UK's eighth-biggest bank by market value, was
crippled by funding problems in September when rising defaults against US
sub-prime mortgages prompted banks to stop lending to each other.
That left the UK lender, which had relied heavily on borrowing in the
wholesale markets to fund itself, with no option but to seek emergency support
from the BoE.
Sir Ian Gibson, Northern Rock's senior non-executive director, today told
shareholders that while the bank had held takeover talks with a number of other
banks including Lloyds TSB in the immediate aftermath of the crisis, none of
them had made an offer for the group.
"No banks in discussions with us were capable of bringing an offer to the
table," Gibson said.
Northern Rock's Sanderson also told shareholders today that no board member
had been paid a bonus since September. It was reported at the weekend that the
bank is paying senior staff members bonuses of up to 100,000 stg a year as part
of an incentive scheme.
Northern Rock shares were down 14 pct at 71 pence by 12.40 pm, with analysts
attributing the decline to worries the bank will be taken into public ownership
at a price below the current share price.

What was the price on its first day of trading eight years ago, I think?

600 in 1998, but suspect it was trading before then .... feel to about 300 a couple of year later, since when, it never looked back until late 2007

Whats happened to Dicky Pickles has he fallen off his white horse. Must dust off my copy of Sinatra's "MY wAY".....and now the end is near.......

In auction again!

skinny

why would it be in auction again? Apols for my ignorance

coeliac1 - have a look here - https://www.moneyam.com/help/?page=level2 and look for this text The auction process occurs regular at opening and closing of the markets and sometimes intraday auctions are called if a stock moves 5% or more in one trade.

Northern Rock shareholders reject most of rebel investors' proposals




LONDON (Thomson Financial) - Northern Rock said its shareholders rejected
all but one of four proposals aimed at forcing it to consult investors over
asset disposals and share issues at an extraordinary general meeting today.
In a statement, the stricken mortgage lender said the single proposal that
won shareholder approval -- which obliges the group to consult investors before
issuing new shares worth more than 5 mln stg -- "will not prove to be an
additional material restriction" on its efforts to overcome its financial
crisis.
The proposals had been put forward by dissident investors RAB Capital and
SRM Global, who own 18 pct of Northern Rock, in an effort to prevent the bank's
management from selling the company or its assets too cheaply.
"Shareholders should be assured that the board of the company will continue
to work towards securing the best possible outcome for shareholders and other
stakeholders," Northern Rock chairman Bryan Sanderson said in a statement.
Northern Rock shares were down 16 pct at 68 pence by 3.32 pm.

and you won't be able to short them either!
reckon there will be several heads rolling at RAB and SRM .... serves them right

cynic - you can short them on CMC spreadbet.

quite surprised .... wonder if it would allow it if you actually tried to ..... i would have thought that, as for CFDs or any other shorting, there had to be a willing lender of stock

cynic - yes it does :-)

short it to 5p...u know it makes sense..screw RAB as well

NRK's latest director appointment ex Merrill Lynch plenty of experience there then!

does Marconi still have a ghost there also?

Today's fudged support "Gov Bond" lifts shares 46% - Wow!
Quite a contrast against FTSE falling 5% under worries with US recession spectre.

Maybe this is not time to short this stock . . . with some life in the Old ex- Mutual, - - - - or Not . . . . .

Nationalisation announced, is this the end of the road for NRK or will this "phoenix" rise from the ashes?

Help what happens now i hold 14000 shares

You get compensation for your shares, but it might be 1p each.