Find Your Broker
Share Name Share Symbol Market Type Share ISIN Share Description
Northern Rock LSE:NRK London Ordinary Share GB0001452795 ORD 25P
  Price Change % Change Share Price Shares Traded Last Trade
  +0.00p +0.00% 90.00p 0 05:00:01
Bid Price Offer Price High Price Low Price Open Price
0.00p 0.00p - - -
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Banks 379.1

Northern Rock (NRK) Latest News

Real-Time news about Northern Rock (London Stock Exchange): 0 recent articles
More Northern Rock News
Northern Rock Takeover Rumours

Northern Rock (NRK) Share Charts

1 Year Northern Rock Chart

1 Year Northern Rock Chart

1 Month Northern Rock Chart

1 Month Northern Rock Chart

Intraday Northern Rock Chart

Intraday Northern Rock Chart

Northern Rock (NRK) Discussions and Chat

Northern Rock Forums and Chat

Date Time Title Posts
11/12/201821:06NRK Idiot Free Zone3
09/8/201210:41NORTHERN ROCK14,137
11/2/201017:35SWEET FA, FSA and PRUDENCE OF NO 10, all producing NOTHING150
04/11/200918:23Basis for Compensation1,419

Add a New Thread

Northern Rock (NRK) Most Recent Trades

No Trades
Trade Time Trade Price Trade Size Trade Value Trade Type
View all Northern Rock trades in real-time

Northern Rock (NRK) Top Chat Posts

miata: Answer: The historical share price about 2 years before the government took over was £11.50 on Friday 17/02/06. The original issue value was £4.51908 and the takeover was on 22/03/08.
aliveli: For research I am trying to obtain the historical share price (about 2 years before the government took over). I looked at yahoo/google and could not find it. Do you know of any source that I coudl use to obtain this information.
qantas: Hedge fund thinks bank slide is overTop investor netted £100m from Barclays sell-off Simon Bowers The Observer, Sunday 1 March 2009 Article history Lansdowne Partners, one of Mayfair's largest and most successful hedge funds, has taken £100m in profits from short-selling shares in Barclays and has told its investors it now believes the British banking sector is undervalued. The fund is understood to have been short-selling Barclays shares - betting on a fall in its share price - for about two years. But it has now cashed in that short position, marking the end of the fund manager's negative view on the bank. Barclays shares peaked at close to 800p in early 2007 and dropped to a five-year low of 60p a month ago. The move is also thought to be part of a wider strategic push by Lansdowne, calling the bottom of the market in British bank and housebuilding stocks - two sectors where share prices have crashed hardest since the credit crunch began. Until a flurry of trades at the end of the year, Lansdowne funds had held very successful short positions in both banks and housebuilders in 2007 and 2008. The change of tack will be one of the most closely watched investment decisions in the market. Co-founded by Conservative Party donor Paul Ruddock, Lansdowne attracted controversy after it emerged it had made an estimated £100m from the demise of Northern Rock. The firm bet the bank had been overvalued at least two years before its downfall, a position that for much of its life showed paper losses running into millions of pounds, before turning profitable as Northern Rock sank into financial meltdown. Other lucrative Lansdowne "shorts" that have been closed included a substantial position in HBOS, which came to light during the bank's troubled rights issue last summer. It was diluted and sold before the lender was forced to accept a government-brokered rescue takeover bid from Lloyds TSB. Lansdowne also took a negative view on Allied Irish Bank, which has been forced to seek rescue funding from the Irish government. The fund cut its short position in the bank by more than 50% last month, making profits estimated to run into tens of millions of euros. Despite these successful short bets on bank stocks, Lansdowne managers last year failed to trigger the kind of huge management fees for which hedge funds are famous. The shine was taken off the funds' performances as investments in a number of companies, most notably in mining firms such as BHP Billiton, proved to be very poor decisions. Overall, the group's funds finished broadly flat for 2008 with its largest fund, UK Equities, the best performer, up 0.5%. But there were no performance fees for star fund managers such as Peter Davies, who runs UK Equities, or William De Winton, who runs Landsdowne Global Financials. The performance was nevertheless extremely credible when benchmarked against the FTSE 100, which fell 31% in the year, or against most hedge fund peers, many of which have been pushed out of business. Lansdowne still feels there could be further share price falls for other sectors. This month it was force to disclose short positions in commercial property firms Land Securities and British Land, representing 1.78% and 4% of the companies' shares respectively. Short-seller behind the Tories Lansdowne founding partner Paul Ruddock is one of the most prominent supporters of the Conservative party, having donated £260,000 to its coffers. It is sufficient to secure him membership of David Cameron's 100-strong elite donors club, the Leaders Group, without denting his estimated £350m personal fortune. A stellar Oxford law graduate, like many in Cameron's circle he went on to work in the City, first for Goldman Sachs and then for Schroders, before jointly setting up Lansdowne Partners in 1998, where he became chief executive. Lansdowne's offices are in the heart of the Mayfair hedge-fund district, just off Berkeley Square, while Ruddock has made his home a short stroll away, across Kensington Gardens in a pocket of Notting Hill called Lansdowne. He made much of his fortune just over two years ago when, together with other partners, he sold close to 20% of Lansdowne to Morgan Stanley for £300m. Much of the proceeds are said to have gone back into the fund. In earlier years, Lansdowne was better known for returns made on shrewd investments in companies such as Tesco and Manchester United but, like many hedge funds, it has recently come under fire from critics of short-selling. Last month, Cameron said: "People might not follow the minutiae of over-leveraging or short-selling, but they know that the roots of our crisis lie in recklessness and greed."
bryan2: About time too! The Observer reports that the Serious Fraud Office could launch an inquiry into BBC business editor Robert Peston's recent string of market-moving banking 'scoops' after David Cameron's Tories raised suspicions that he could have a 'mole' inside 10 Downing Street or the Treasury. The SFO confirmed to the paper that its director, Richard Alderman, had received a letter from Tory MP Greg Hands, asking it to investigate 'allegations of fraudulent behaviour' at the heart of government. At critical points in the NRK crisis he appeared to use insider/spin information supplied by BoE/Tresury to drive down the NRK share price.
coogar: bryanmuppet The only thing that supported the NRK share price in its dying days was the muppet hedge funds continuing to increase their stakes in the hope of making a quick buck. Egg on lots of faces now.
ajmace: I was watching the rugby.! Well done Coogar, in 10141 at last you did make some sensible comments. You do not yet appear to have come to terms with the numerical side of the situation. Friday's closing price does assume a Virgin 2nd proposal which is not alot more generous than the last time. The other two proposals will certainly lead to an uprating in the NRK share price. Good luck to everyone. Hope the news will be favourable. Good night.
coogar: I made no predictions for the NRK share price during last weekend, unlike the muppets. I also remember KatyMuppet from way back on here, when the NRK share price was still well into three figures (LOL - she'll NEVER get her money back) so to save me from any more of her ignorance... KatyLied - 21 Jan'08 - 14:24 - 8554 of 8555 (Filtered) KatyLied - 21 Jan'08 - 14:25 - 8555 of 8555 (Filtered)
coogar: Well done all you muppets who spent most of the weekend predicting the NRK share price would go back above 100p again today... for preserving your MUPPET STATUS!
coogar: Pure bragging on my part but... With the NRK share price languishing at 100p again I thought I would mention that I just made a 100p/share profit on another share in only three months! Yay, I can now afford to invest in NRK for 'free'. Still don't think I'll bother though.
scribbler101: snappy - I think it is you missing the humour. Apart from anything else, your multiply posted pic is obviously of Branson with his arm round Darling, whose toupée has slipped. But you do not say so. As to my comment "snappy - make it" - move your name to the end and see what you read. "Northern Rock Shareholders Action Group – Update No. 12 The status of the "strategic review" and Virgin offer On Monday the 26th November, the company announced that the Virgin Group consortium had been selected as the "preferred bidder", and discussions with them were being taken forward. A copy of the announcement can be seen on the company's web site at: . Virgin now need to do the necessary due diligence and firm up their proposals which may take some weeks. Note that the company has not ruled out consideration of other offers if these are quickly progressed – for example we understand that Olivant are still actively doing so. The immediate reaction of the stock market was mixed with the share price wildly fluctuating but then showing some improvement – clearly the offer was as difficult to evaluate for stock market professionals as it was for amateur investors. Press and TV commentators also caused some confusion with many shareholders appearing to think that Virgin had offered 25p for their existing shares – this is not the case! The Basis of the Proposal Virgin is not offering to buy the existing shares. But they are intending to take control by acquiring 55% of all the shares in the company after a lot of new shares are issued. Currently there are 420 million shares in issue, and this will rise to 6,620 million after the new shares are issued. In total £1.3bn of new cash will be injected into the business, plus the Virgin Money business – the latter being valued at £250m. Of the cash, half will be provided by the Virgin consortium and half by existing shareholders by subscription to a rights issue. In other words, you the existing shareholders will be asked to pay for 6 new shares at 25p for every one share you currently hold – in effect subscribing £1.50 per existing share to maintain a substantial interest in the company (but obviously less than you currently own as Virgin will own 55% and existing shareholders only 45%). The upside is that if the company prospers, you will participate in the future growth and profits of the company. But of course you don't necessarily have to take up a rights issue and what happens in that case is somewhat crucial – see below for discussion on that. How to Value this Proposal An analysis of how one might value the proposal from Virgin is as follows: At the half year results stage the net equity attributable to shareholders was £2.3bn, or some 550 pence per share. We estimate that "impairments" and excess interest costs may have reduced this to £1.9bn or 450 per share. At present there are 420m shares in issue in Northern Rock. After the Virgin bid there will be 6,620m shares in issue of which the present shareholders will hold 3,020m, and the Virgin consortium 3,600m. To "reach" 3,000m existing shareholders have to pay £650m (25 pence per share, 6 new shares for each one share we hold). Virgin also gets 2,600m shares at 25 pence each for £650m PLUS they get 1,000m new shares for the £250m value of Virgin Money. If the deal goes ahead, existing shareholders will own 3,020m shares in total (420m existing plus 2,600m new ones) and Virgin will have 3,600m. This roughly matches the 55% figure that the Virgin consortium states it will have in the combined new entity which is to be rebranded with the Virgin name. The "additional" £1.3bn added in capital plus the existing Virgin Money business will produce a business which will have combined assets of £3.4bn attributable to shareholders. Based on 6,620 million total shares, each share might be worth around 50 pence in round figures. What this means is that ONE old Northern Rock share plus six new shares will have a combined asset value of about 350 pence. Since the new six shares will cost 150 pence (25 pence per share) that implies that the EXISTING share is worth up to 200 pence. As that is clearly more than the existing market price, it suggests that the City is calculating that the new entity will be worth substantially less and nearer to £2.5 Billion in total. The value may also be affected by the need to pay arrangement fees on the funding to replace the Bank of England's finance and by possible write downs on assets that will be put up for sale that we have not taken into account. Presumably also people are discounting the future profit stream, discounting the value of the assets or anticipating some difficulties that Virgin may face in resuscitating the business. Or perhaps they are discounting the possibility of the Virgin deal not being consummated. There would obviously be some risk of the company being forced into receivership or being nationalised if the Virgin proposal collapses and no other offer is made – we have covered what might happen then in previous notes. Note that the discussion above values the business on the basis of an uncertain estimate of the "net equity" as it might appear in up to date restated accounts. It does not follow that this is necessarily the "right" way to value the business. Before the problems became apparent, the market price of the shares was much higher – this suggests that the business then was expected to grow profits substantially in the future, something which the current price does not appear to anticipate. The valuation given is based on assets rather than future projected profits or cash flows so may be on the conservative side. The purpose of setting out the above analysis is to help shareholders get a feel for what is happening, not to recommend a course of action or to suggest what the price ought actually to be. Possible Negative Aspects of the Proposal In effect, using the same figures given above, Virgin group is obtaining 55% of a business with assets of nominally £2.3bn for a contribution of £650m in cash plus the Virgin Money business. Even valuing the latter at £250m, that is an exceedingly good deal for them. But is the Virgin Money business really worth the value of £250m put on it though? We understand historic pre-tax profits are of the order of £10m so that's a p/e of well over 25 allowing for tax which is exceedingly high for a financial institution in the current market place – most banks now trade on a p/e of less than 10. So it looks a rather inflated valuation to many commentators. Another possible problem for private shareholders is that to participate in this proposal, and to maximise your returns, you will have to subscribe for the new shares. Small shareholders may not have the cash to stump up at the time, nor an inclination to raise their stake in Northern Rock – they may see this as doubling up on a speculative investment. What will happen if the rights are not taken up? There are two ways of doing this and we don't know for certain which will be used. In some cases rights not taken up simply lapse in which case Virgin would end up owning a lot more than 55% of the new company. The other way is to allow rights to be sold, in which case existing shareholders might obtain some cash for the "rights", and other institutions might pick them up. We are of course not opposed to the concept of a rights issue for Northern Rock – many of our shareholder contacts have suggested that one is required. Other deals that may be put on the table may also involve a rights issue. Even private shareholders may look favourably on such a proposal if they view it as an investment in the future. But if it is structured to look like shareholders are simply being asked to subscribe to maintain a reasonable stake in the business, which they currently own outright, then they may take a different view. Whatever approach is taken, any existing shareholders will end up as minority investors in a company controlled by a private entity (the Virgin consortium). Many investors in stock market companies prefer not to invest in such situations as it can cause "governance" issues to arise (see BSkyB for a recent example), and the share price can be negatively affected by the fact that it is clearly pretty invulnerable to bids from third parties. Another problematic issue is abandoning the "Northern Rock" name which is undoubtedly an issue for many investors based in the north of England who are attached to that brand. And it is questionable whether Virgin is a good name for a bank. Does it have the right "connotations" for a respectable financial institution? You can judge that for yourselves. Note that apparently a fee will probably be charged by Virgin Group for use of the Virgin brand name. Positive Aspects of the Proposal There are some positive aspects of the proposal though. Clearly the company would continue as an independent business based in the north east of England, and most jobs would therefore be retained – although there are not likely to be any guarantees of that longer term. The Government at least gets some of it's funding back fairly quickly, the Tripartite Authorities seem happy with the deal and the Northern Rock foundation will continue to get a share of profits. UKSA Suggests the Virgin Proposal Might Not be Acceptable to Shareholders From our soundings of existing shareholders and the feedback we obtained from shareholders at the meetings we held in London and Newcastle, it is clear that there is considerable opposition to the Virgin deal from current individual shareholders. Taking into account the financial analysis (and thanks to Pradeep Chand for some assistance with that), we feel that it is not an offer that is likely to be accepted by shareholders if put to a vote, particularly if it is noted that RAB Capital and SRM Global have stated their opposition to the deal – SRM Global have apparently even increased their stake in the company recently, allegedly for the purpose of trying to block the deal. Incidentally I have been assured by the Chairman of Northern Rock that shareholders will get to vote on any proposal once it has been firmed up. The shareholders we have spoken to have generally said that they would like to see the financial value of the offer increased (it's simply too favourable to Virgin and not favourable enough to existing shareholders), or other offers on the table that would enable existing shareholders, particularly smaller shareholders, to participate more fully in the business going forward. Alternatively the company should simply stop the "strategic review" process and restructure and revive the business itself. Roger Lawson Communications Director UK Shareholders Association (UKSA) BM UKSA London, WC1N 3XX Tel: 020-8467-2686 (Intl: +44-20-8467-2686) Fax: 020-8295-0378 Email: Web: UKSA ® - The independent voice of the private shareholder The United Kingdom Shareholders' Association Limited. Registered in England Company No. 4541415
Northern Rock share price data is direct from the London Stock Exchange
Your Recent History
Northern R..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20190122 08:16:32