Olivant pulls out of Northern Rock rescue

Northern Rock suitor Olivant withdrew today from the race to rescue the crisis-hit bank in a shock 11th-hour decision.

The investment group, headed by former Abbey chief executive Luqman Arnold, said it had failed to come up with an offer that could satisfy its investment needs, the Government’s financing terms and the interests of Northern Rock stakeholders.

Its decision to pull out, which comes as the deadline for final bids was due, leaves just two likely rescuers – the Virgin-led consortium and the bank’s own management team.