Virgin Money is poised to re-enter the £2.5bn race for the 632 branches being sold by Lloyds Banking Group with the promise of financial backing from an arm of the Abu Dhabi Investment Authority (ADIA).

Virgin, which is already bidding for Northern Rock, is considering mounting the second-round bid as it attempts to build a challenger brand to rival the high street banks. The online bank, which is part of Sir Richard Branson's Virgin empire, did not to make a formal first-round bid for the branches. The Abu Dhabi Investment Authority (ADIA) is one of five investors backing Virgin Money following a detailed search for new financing by financial advisers, Greenhill.

Three other backers have been named as Carlyle, General Atlantic and the Universities Superannuation Scheme. Each of the five backers will take a minority stake in Virgin Money if it is successful in winning either the Northern Rock bid or the Lloyds branches bid, or.....Read more on todays story----> Abu Dhabi to back Virgin Money in bid for 632 Lloyds branches - Telegraph