Virgin Money out in front

Sir Richard Branson’s Edinburgh‑based Virgin Money is believed to have emerged as the favourite to buy Northern Rock in a deal valuing the taxpayer‑owned bank at £1 billion, compared with the £1.4bn pumped in when the lender failed in 2007.

Final bids for the Newcastle-based bank are due this week, with one Sunday newspaper reporting that Virgin will pip buy-out vehicle NBNK – which is led by Lord Levene and former Rock chief executive Gary Hoffman – to the prize.

Virgin’s other rival for Northern Rock, the American private equity firm JC Flowers, is reportedly on the brink of dropping out of the bidding process.