Everybody happy, if possible

The Virgin consortium was selected as the preferred bidder after an intense weekend of talks with Northern Rock´s board directors and the tripartite authorities.

Sorting out The Rock mess is not being a very easy task for both the company board and the authorities as the solution must satisfy six tough conditions:

1. To get the taxpayer out without losing money.
2. To mantain the financial stability.
3. To protect depositors.
4. To satisfy shareholders interest.
5. To protect jobs in the bank.
6. And to meet EU rules designed to prevent governments distorting competition across Europe.

The Virgin bid appears to have the opportunity to meet the six requirements, because it is understood its offer consists on an immediately repayment of 11 bn pounds to the Bank of England. Furthermore, Richard Brandson will inject some of his own money into the bank. And deposits in Northern Rock are still guaranteed by the government.

However, Northern Rock shareholders may be a tougher group to satisfy, as they consider bidders´proposals not enough. In fact, the largest shareholder raised its stake in a sign of its determination to block Sir Richard Branson´s takeover of the "Blackbird" on Tuesday. The problem is that they are afraid of being left with a massively diluted stake in the bank if the Virgin´s proposal goes ahead.

In conclusion, although Virgin offer is the favourite one right now rival bidders could press their proposals offering better conditions than Richard Brandson´s one.