RETURNING Northern Rock to private ownership may not necessarily generate massive windfalls for investors, a local stockbroker has claimed.
The Government is looking to recoup the £1.4bn it spent bailing out the Newcastle-based bank following its collapse in the credit crisis.
Potential buyers include Sir Richard Branson’s Virgin Money and US private equity firm JC Flowers, which are both understood to have tabled first round bids.
This week the Rock’s Government-appointed chairman, Ron Sandler, claimed the company could bounce back into the black next year after posting a £78.8m loss for the half-year to June.
But his bullish words will not necessarily spark a large-scale bidding war for the firm, according to Stokesley stockbroker Andrew Priestley.
Mr Priestley, of Redmayne-Bentley, said: “I don’t see there being a flock of investors buying into Northern Rock at the moment.
“It’s still in recovery mode.
“It’s off life support and learning how to get going again - but it’s clearly not going to do the marathon.”