More cash needed for takeover bid

INVESTMENT GROUP Olivant has been told it will have to put an extra £200-300 million (€280-420m) into its takeover bid for ailing bank Northern Rock, according to a report yesterday.

The Sunday Telegraph said it was understood that the Government, the bank and Northern Rock’s board were concerned Olivant’s plans did not include enough new equity, threatening its future financial strength.

Olivant is vying with Virgin Group for control of Northern Rock.