Olivant, an independent investment group headed by the former leader of Abbey Luqman Arnold, today announced that it is preparing a proposal for the Board of Northern Rock.
Shake-up
Mr. Arnold is expected to become chief executive if the move is successful, replacing current boss Adam Applegarth.
The statement said that the proposal would involve the immediate introduction into Northern Rock of Mr. Arnold and his team to work alongside its existing Board and management, and made it clear that the company 'is not proposing an offer for the shares of Northern Rock.’
It is believed that Olivant has around £150 million to invest in the move, thought to have been raised from its investors earlier this year. The figure would claim around 20 percent of the bank.
The group would not receive any remuneration or fee, with their reward coming from any revival in Northern Rock's share price. They have spent the past month preparing a detailed plan to take control and keep Northern Rock going as a viable business.
Reputation
Mr Arnold is best known for joining Abbey after the UK's fifth-biggest bank dived into the red five years ago. He stabilised its performance before the business was sold to
Spanish bank Santander.
Shares in Northern Rock climbed 7.85 percent to 156.38p on the news
November 12, 2007
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