UK govt wants 200 mln stg from Virgin if N Rock rescue succeeds
Park LONDON, Feb. 15, 2008 (Thomson Financial delivered by Newstex) -- The UK government wants Virgin Group to pay it up to 200 mln stg if the bidder succeeded in turning round Northern Rock within three years, the Financial Times reported without citing sources.
The paper said ministers are pushing for a better deal for the taxpayer from Virgin's bid, after an offer from Northern Rock's management team fell short of government expectations.
The government will demand warrants over any upside in the stricken mortgage bank, the FT said, and it is thought to be pushing for the taxpayer to receive between 100 mln and 200 mln stg if Northern Rock was revived within three years.