Consortium to be led by Virgin

A consortium of investors, including AIG, could be poised to take a majority stake in ailing bank Northern Rock.

The proposal has been put forward by Sir Richard Branson's Virgin Group, which would see the bank rebranded under the name Virgin Money. Under the terms of the proposal, Northern Rock would keep its stock market listing.

Virgin did not say how either much it was offering for Northern Rock shares, or what size stake it hoped to buy.

Branson said: "I have pulled together a heavy-hitting consortium that we believe has not only the knowledge and expertise but the financial clout to make a once great British institution great again."

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