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Richard Branson prepares to take Virgin banking to the high street
Originally posted by 5corpio
The Virgin boss is bidding for Northern Rock and 600 branches of Lloyds which are expected to be up for sale next month
Sir Richard Branson is preparing to make multibillion-pound parallel bids for Northern Rock and 600 branches of Lloyds Banking Group in a move that would catapult his Virgin Money brand on to the UK's high streets. In echoes of the way his Virgin empire took on the airline industry, Virgin Money intends to add a "bit of glamour" to high street banking.
In an interview with the Guardian, Jayne-Anne Gadhia, chief executive of Virgin Money, said the ambitious group would bid for both businesses, likely to be put on the market next month.
On Thursday night Gadhia was putting the finishing touches to presentations to investors who she hopes will provide a £3bn war chest to fund the potential acquisitions.
The board of Northern Rock, chaired by Ron Sandler, is understood to have met on Thursday to discuss proposals set out by City advisers Deutsche Bank to extricate the bank from taxpayer ownership.
Lloyds is being forced to sell 600 branches to appease European rules on state aid following its taxpayer bailout and is keen to execute a sale after the independent banking commission – due to make its final report in September – suggested even more should be sold off.
Gadhia said Virgin Money, which tried to buy Northern Rock before it was nationalised in February 2008, wanted to be in the initial running for both outlets. Branson met Lloyds boss António-Horta Osório this week to discuss a bid. "We want to make sure that certainly, in round one, we are in both," she said. "Does that mean in the end we would end up buying both? We have to realistic," she said.Once Virgin has ploughed through all the financial information released by the banks, it seems more likely to chose between two......Read more HERE
Sir Richard Branson is preparing to make multibillion-pound parallel bids for Northern Rock and 600 branches of Lloyds Banking Group in a move that would catapult his Virgin Money brand on to the UK's high streets. In echoes of the way his Virgin empire took on the airline industry, Virgin Money intends to add a "bit of glamour" to high street banking.
In an interview with the Guardian, Jayne-Anne Gadhia, chief executive of Virgin Money, said the ambitious group would bid for both businesses, likely to be put on the market next month.
On Thursday night Gadhia was putting the finishing touches to presentations to investors who she hopes will provide a £3bn war chest to fund the potential acquisitions.
The board of Northern Rock, chaired by Ron Sandler, is understood to have met on Thursday to discuss proposals set out by City advisers Deutsche Bank to extricate the bank from taxpayer ownership.
Lloyds is being forced to sell 600 branches to appease European rules on state aid following its taxpayer bailout and is keen to execute a sale after the independent banking commission – due to make its final report in September – suggested even more should be sold off.
Gadhia said Virgin Money, which tried to buy Northern Rock before it was nationalised in February 2008, wanted to be in the initial running for both outlets. Branson met Lloyds boss António-Horta Osório this week to discuss a bid. "We want to make sure that certainly, in round one, we are in both," she said. "Does that mean in the end we would end up buying both? We have to realistic," she said.Once Virgin has ploughed through all the financial information released by the banks, it seems more likely to chose between two......Read more HERE