JC Flowers tries to derail Virgin bid for Rock

JC Flowers tries to derail Virgin bid for Rock

JC Flowers, the US private equity firm, made a last-ditch bid yesterday to wreck Sir Richard Branson’s takeover of Northern Rock after it signalled possible increased payouts for shareholders as part of a revised offer. The move is likely to heighten tensions between the three main bidders for the bank and the Treasury, which is thought to be keen on a quick sale to close the door on the politically and financially embarrassing episode. Sources close to Flowers said attempts to sit down with Treasury officials this week had proved fruitless, despite promises from the government that all takeover proposals would be examined. The Treasury denied last night that it was reluctant to engage in talks with the Flowers team. “We stand ready to have discussions with any bidder that meets the principles we set out,” it said. Flowers, which was founded by the former Goldman Sachs partner Chris Flowers, has threatened to walk away from the deal unless ministers get back around the negotiating table within the next few days.
[The Guardian page 42 - 1.12.07.]