NAB move to spend $2.25B to buy British bank
5 January 2010
National Australia Bank has now been confirmed as the current highest bidder in the battle to buy British lender, Northern Rock, with a move to bid $2.25 billion for the bank. The dollar amount attributed to Northern Rock was established from the banks most recent capital injection from the British government.
According to reports, National Australia Bank is about to appoint advisors that will make the bid within in the next few months as the battle for the first major bank casualty of the Global Financial Crisis comes to head.
Main competition for Northern Rock comes from Spanish bank BBVA and the Virgin Money group with National Australia Bank apparently most interested in the Northern Rock retail portfolio and banking side of the business. This retial side is estimated to be worth around $34 billion of customer deposits with additional high-quality residential mortgages.
According to The Australian, other banks including Lazard, Credit Suisse, Citi and Morgan Stanley have contacted the National Australian Bank about leading the move to purchase the "good" assets of the British lender, as determined by the British government's "good bank-bad bank" system.
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