Richard Branson’s Virgin Money are Paddy Power’s strong favourites to buy the Northern Rock bank as the government prepares to remove its 100% Savings guarantee in readiness for a sale.
Branson, who has been keen to grow his presence in high street banking for some time, is the 6/5 favourite ahead of Tesco Bank at 5/2, despite the supermarket bank’s Chairman and CEO both appearing to rule out a purchase last October. Former front runners JC Flowers are 7/2.
Whilst competition rules prevent the major banks from taking on the nationalised bank, other names in the running and believed to be interested include Santander and National Australia Bank at 5/1 and 8/1, respectively, with Mike Ashley – the beleaguered owner of Northern Rock sponsored football team Newcastle United – a 500/1 outsider.
Darren Haines, spokesman for Paddy Power, said:
Whilst JC Flowers were showing a strong interest before Northern Rock’s run in 2007, Branson’s recent recruitment of several senior executives at Virgin Money suggests he means business.
Who will buy Northern Rock?
6/5 Virgin Money
5/2 Tesco
7/2 JC Flowers
5/1 Santander
8/1 National Australia Bank
500/1 Mike Ashley
