Ten firms in running for the job of valuing Northern Rock

Jul 7 2008 by Graeme King, The Journal

AROUND 10 different firms have put their names in the hat to value Northern Rock, despite the possibility of legal action resulting.

A report yesterday said the Treasury was “delighted” with the level of response to the job.

However the role will not be straightforward as former Northern Rock shareholders will be able to appeal against any decision made by whoever the valuer ends up being.

A spokesman for the Treasury said: “Around 10 firms have applied for the role of valuer of Northern Rock. We will now invite firms in to make presentations, and a recommendation is expected to be made at the end of July. The final choice is the Chancellor’s.”

Applicants will be checked over by a panel of City names, including the chief executive of the Institute of Chartered Accountants in England and Wales Michael Izza, Anthony Fry of Evercore Partners, Christopher Gardner QC and Louise Tulett, the finance director of the Treasury.

SRM Global, the Monaco-based hedge fund that held an 11% stake in Northern Rock before its nationalisation, has already declared it believes it will have a strong professional negligence case against anyone taking on the valuation role for Northern Rock because of the restrictions placed on the process by the Treasury.

The Treasury advertised for the role of valuer after soundings taken in the City post nationalisation revealed a lack of interest in the position.