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Virgin look to Chinese for Northern Rock buy-out
Business digest: Sale of nationalised bank could see Chinese invest in British banking system
SIR RICHARD Branson, the CEO of Virgin, is in the process of trying to secure backing from the China Investment Corporation for his bid for bailed-out British bank Northern Rock.
Virgin Money have already secured £500m from US tycoon Wilbur Ross, as well as smaller amounts from US private equity vehicles Carlyle and General Atlantic Partners, and the Universities Superannuation Scheme.
It is not known how much money CIC is being asked for. Northern Rock is expected to go for £1bn following the announcement of its sale this summer. This would represent a £400m loss on the £1.4bn the government spent buying it in 2008.
CIC already invests in Blackstone Group, Morgan Stanley, Visa and GDF Suez. If the Virgin Money backing deal went through, this would be the first time the Chinese would be investing in British banks, a big boost for the currently flagging system.
Read a full report at the Daily Telegraph. ·
