The Virgin Money bid for Northern Rock could see the former building society
pay the Richard Branson enterprise a percentage of annual revenues for the use
of the brand name. As part of a 20 year deal the figure could reach a total of
£200m. Virgin Money is the preferred bidder.
However, RAB Capital, which owns 7 pct of Northern Rock, does not think the
Virgin Money bid offers value and will reject it.
In today's Daily Telegraph Jeff Randall criticises the Richard Branson bid saying
Northern Rock shareholders will be funding their own rescue.
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