Northern Rock faces showdown with shareholders

Crisis-hit British bank Northern Rock is today set for a high-profile showdown with its own shareholders demanding a bigger say in the future of the ailing firm.

The lender will attempt to fight off the calls at an extraordinary general meeting this morning at Newcastle’s Metro Radio Arena.

Northern Rock’s board says the proposals from its two largest shareholders will hinder the efforts to rescue the stricken company, which faces nationalisation if a private sector solution cannot be found.

There were claims last night, however, that nationalisation could breach the British government’s self-imposed sustainable investment rule, which states that national debt should not exceed 40% of GDP.

Passions are likely to run high today as many of the bank’s 100,000 smaller shareholders are expected to attend the 11,000-seater venue to voice their anger at the bank’s woes.