Northern Rock want to rescue
JC Flowers Billionaire Christopher Flauers is ready to pay yesterday for it 15 mlrd pounds
declared that at it is 15 mlrd pounds sterling on savings and loan association Northern Rock purchase. Owner JC Flowers, made to itself a fortune on buying up of bankrupts, could collect unexpectedly generous financing for resuscitation Northern Rock, trampled a hedge - funds. Its unique competitor Cerebrus Capital Management yet has not sounded the counteroffer.
on Monday of action Northern Rock have failed on 14 % from - for hearings that the bank will be sold with big diksontom and most likely - in parts. On these gamble a hedge - funds have once again cashed the short positions. When on Wednesday morning game was entered by Flauers, actions have risen in price for 14 %. On closing of session they bargained with 10 - the percentage award. The billionaire who already buys in the USA one mortgage bankrupt, agency Sallie Mae, has calmed shareholders whom weeks in the beginning have rushed to sell the papers, having a presentiment for itself of a poor prize for lack of buyers. According to the British press, the Bank of England did not manage to marry off Northern Rock to any of 12 large British banks - after familiarity with balance they absolutely lost interest.
according to Daily Telegraph, transaction financing mostly will lay down on shoulders JP Morgan. It has allocated Flauersu the credit for purchase of mortgage agency Sallie Mae in the USA. Also “ in a dale “ have appeared Wachovia Corp. And Citigroup. In spite of the fact that the size of the fund collected by them is already known, shareholders should wait at least month to learn, how many they will receive. The exact sum of transaction will be named only after examination of condition Northerh Rock.
About degree of deplorableness of its affairs of analytics already speak metaphors. “ now the bank is as though connected to the volume ventilator, and tubes conduct in Bank of England “ - analyst Panmure Gordon of Sendi Chen practises in metaphorical thinking. By its estimation, this year the bank will finish at a loss in 120 million pounds. Till Monday, on October, 1st, the forecast g - on Chena was 298 million pounds of profit. “ now the average rate of payments on mortgage loans at Northern Rock - 6 %. Thus borrow money in the market bank can at the best on 6,2 % or above. And guarantees of credit status from Bank of England in this case help it " a little; - has told g - n Chen daily.
the Adviser on due diligence and sale procedure the British bank has chosen Citigroup. According to Financial Times, its representatives already met Flaueersom who has assured that, unlike competitors from Cerebrus, he buys Northern Rock not for the subsequent sale by small portions.
“ to keep business, the buyer should solve the main problem - to find creditors. For this purpose it is necessary to convince rating agencies at least to preserve ratings Northern, and at the best - to raise them “ - analyst NCB Group of Sajmon Uillis is assured. As he said, solid financing at all does not guarantee JC Flowers a victory in auction over Cerebrus: “ For Cerebrus to collect as much or any more will not make work. Name Northern Rock has already received such damage that how Merving King wanted to rescue it, shareholders will not believe in a fairy tale on possibility of restoration of business “.