According to a statement released by the company, talks of a potential takeover are currently at a preliminary stage and no price has been proposed as yet, reported Bloomberg.
The publication also revealed that the embattled bank’s stock dropped 74% after customers flocked to the bank to withdraw their money in fear of it going bankrupt. It is understood that around GBP2 billion was withdrawn in just three days after the bank sought emergency help.
Bloomberg quoted Northern Rock’s CEO Adam Applegarth as saying that the bank’s independence was in danger as its current financial status has hampered the group from making new loans.
Meanwhile, the UK Shareholders’ Association, which has vetoed any plans to sell the company, is seeking a meeting with Northern Rock’s chairman and investor-relations director, Bloomberg revealed.
Bloomberg quoted Roger Lawson, communications director of the UK Shareholders’ Association, as saying: We would like to stop the company from being sold on the cheap in a fire sale, which is what seems to be happening. It could rebuild its business given time and reasonable funding.
