PR Week Echo Columns

The Government was accused of "rushing" by accepting Virgin Money as the 'preferred bidder' for Northern Rock, described as a "national laughing stock" by Chris Blackhurst (City Editor, Evening Standard, 26 Nov). In the face of more "criticism over its economic competence" (politics.co.uk, 26 Nov); the Government's haste to support the Virgin bid was defended at the CBI conference by Gordon Brown. This was despite pressure from acting Lib-Dem leader Vincent Cable, who called for trading in Northern Rock shares to be suspended, claiming the bank was the target of speculation by City "spivs and sharks" (Mirror, 27 Nov).

Virgin Money Chief Executive Jayne-Anne Ghadia, whose own credentials to lead the rescue operation were questioned, called the bid the "best deal for all stakeholders" (The Times, 27 Nov), while Sir Richard Branson wrote a personal letter to all Northern Rock shareholders to tell them he was "personally committed" to the bid (FT, 26 Nov). However, smaller shareholders led a chorus of disapproval, calling the entrepreneur's offer "derisory" (Guardian, 27 Nov), and voting to reject the "fire sale". Nevertheless with nationalisation of the stricken bank looking less and less likely, Virgin's bid (or that of the rival consortium led by ex-Abbey boss Luqman Arnold) might be their only option to salvage any value from their stock.