US giant GMAC to back bid for Northern Rock: Report
US financial services group GMAC will lead a rescue bid for stricken British bank Northern Rock, according to a media report on Sunday.
By Agencies |
LONDON: US financial services group GMAC will lead a rescue bid for stricken British bank Northern Rock, according to a media report on Sunday.
The Sunday Times, which did not cite its source, reported that GMAC would play a key role in a bid being assembled by US private equity group Cerberus.
Cerberus -- which owns 51 percent of GMAC -- is one of three suitors that are conducting due diligence on Northern Rock's accounts, the weekly paper added.
Northern Rock also faces takeover interest from US private equity firm JC Flowers, while Richard Branson's Virgin Group wants to lead a separate consortium rescue plan.
Since early August, world financial markets have been rocked by a global credit squeeze, which resulted in a funding crisis for Northern Rock.
In September, the group was forced to ask for financial help from the Bank of England -- sparking the first run on a British bank in living memory.
Commercial banks have become very nervous about lending cash to each other amid fears over possible exposure to the US housing market slump -- creating a so-called credit crunch.
Northern Rock is Britain's fifth-largest provider of home loans or mortgages.
The Sunday Times, which did not cite its source, reported that GMAC would play a key role in a bid being assembled by US private equity group Cerberus.
Cerberus -- which owns 51 percent of GMAC -- is one of three suitors that are conducting due diligence on Northern Rock's accounts, the weekly paper added.
Northern Rock also faces takeover interest from US private equity firm JC Flowers, while Richard Branson's Virgin Group wants to lead a separate consortium rescue plan.
Since early August, world financial markets have been rocked by a global credit squeeze, which resulted in a funding crisis for Northern Rock.
In September, the group was forced to ask for financial help from the Bank of England -- sparking the first run on a British bank in living memory.
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Commercial banks have become very nervous about lending cash to each other amid fears over possible exposure to the US housing market slump -- creating a so-called credit crunch.
Northern Rock is Britain's fifth-largest provider of home loans or mortgages.
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