The former Abbey boss had been reported to be an interested party, putting forward a plan involving his investment firm, Olivant.
However Arnold is said to have stepped up his game after Northern Rock revealed it favoured Sir Richard Branson's consortium over other interested parties. According to reports emerging this morning, Arnold's proposal sees him and his management team paying market prices for a 15 per cent stake in Northern Rock, using this vantage point to then turn it around.
Chancellor Alistair Darling has stressed that despite the flailing bank naming the Virgin Group's consortium as it's number one, the way is still clear for other bidders to come forward and lay their cards on the table.
This may well be a key move as further reports surface of a major shareholder, RAB Capital, taking steps to block the Virgin bid.
Richard Farr, director of the Association of Mortgage Intermediaries (AMI) believes that the earlier this matter is settled and a take-over bid is progressed, the better it will be for the future of the market.
“Northern Rock has historically been a major intermediary lender. We trust Virgin will stay as committed to the intermediary market. Should the takeover of Northern Rock by the Virgin consortium be a success, we would be delighted to work with the new owners in order to educate them on the essential role brokers play within the industry.”
