Northern Rock sales memorandum issued
05/11/2007
According to reports sales information memoranda have now been distributed for UK-listed bank Northern Rock.
The formal memorandum was issued to potential bidders on Thursday 1st November, by advisers Merrill Lynch, Citigroup and Blackstone. Interested parties now have two weeks to submit an offer for the company.
Proposals have already been received by JC Flowers, Cerberus and a consortium led by Virgin Group.
The memoranda is said to detail three possible outcomes, which are either a full sale of the bank; a sale of either Northern Rock's "prime" mortgage book; or the sale of Northern Rock's IT infrastructure or new business. Another possible option put forward in reports could include a financial restructuring of Northern Rock.
The sale or restructuring process is expected to be lengthy and complicated.
