Bid to prevent hasty deal on Northern Rock

By The Newsroom
Published 7th Jan 2008, 00:00 BST
NORTHERN Rock's biggest shareholder yesterday said other investors should back its proposals to prevent a "hasty" deal as the bank's value was "materially in excess of its current share price".

In a letter to shareholders of the stricken lender, hedge fund SRM Global said Northern Rock was "nothing like the 'lame duck' that some would have you believe".

SRM and RAB Capital, the next biggest shareholder, have called an extraordinary general meeting, to be held a week today, for investors to vote on whether assets can be sold or significant new shares issued. Northern Rock has said the proposals could hinder a swift rescue.

SRM's letter appears to deploy similar arguments to those in a shareholder circular from RAB Capital which emerged over the weekend.

Shares in Northern Rock edged up 0.25p to 84.25p.