Northern Rock share price tumbles
Tuesday, 20 Nov 2007 13:12
Northern Rock: Share price falls
Northern Rock's share price fell by as much as 25 per cent today as the lender's fate hangs in the balance.
The falls in the share price led trading to be suspended, while the Northern Rock value recovered to an 11 per cent fall at lunch.
At the lowest point Northern Rock's share price stood at 60p, down from a year high of 1,258p.
Yesterday the bank revealed offers taken for the company were "materially below the market price" on Friday and Reuters reports private equity firm JC Flowers will offer shareholders "nominal value".
Previous frontrunner equity firm Cerberus is also believed to have bowed out of the race for Northern Rock.
Other bidders still thought to be interested in Northern Rock include Sir Richard Branson's Virgin Group and the investment firm headed by former Abbey boss Luqman Arnold.
Chancellor Alistair Darling told parliament yesterday the government would veto any deal that does not provide value for the taxpayer.
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