Blow for Virgin-led team's bid for Northern Rock

Richard Branson’s bid for Northern Rock has taken a blow after the crisis-hit lender placed a rival suitor on an equal footing, it was reported today.

A Virgin-led team was the firm’s preferred bidder, but Olivant, an investment company led by former Abbey boss Luqman Arnold, has now been given access to the company’s banks and management, according to several newspaper reports.