Future is in doubt

Jan 14 2008 By Karen Mclaughlan, Evening Gazette

THE board of beleaguered Northern Rock will attempt to fight off demands from shareholders for a greater say in the firm’s future at an extraordinary meeting this week amid speculation the bank could be nationalised within days.

It follows the disclosure yesterday that a top City troubleshooter had been recruited by the Treasury to head the bank in the event of it becoming nationalised.

The appointment of Ron Sandler, a former chief executive at Lloyd’s of London, suggested contingency plans should a private sector buyer not be found, were well advanced.

Analysts predict an announcement by Chancellor Alistair Darling could be made within days, perhaps even ahead of tomorrow’s shareholders’ meeting when thousands of investors are expected to flock to Newcastle’s Metro Radio Arena.