The revolt, orchestrated by Northern Rock’s major shareholders SRM and RAB Capital, fell short of gaining more say in the sale of the lender by less than 10 per cent of the required 75 per cent needed in an extraordinary meeting.
Only one resolution out of the four was passed, whereby the board must seek shareholders’ approval to allot shares of a nominal value above £5 million.
Bryan Sanderson, chairman of Northern Rock, said: “While we are pleased that all but one of the resolutions proposed by SRM and RAB Capital were not carried, we recognise that a material number of shareholders did vote in favour of these resolutions.
"Shareholders should be assured that the board of the company will continue to work towards securing the best possible outcome for shareholders and other stakeholders in the company.”
However, concerns that nationalisation will prove the ultimate end grew with the Treasury’s recent announcement that Ron Sandler, former head of Lloyds Insurance, would step in as executive chairman if Northern Rock is nationalised.
Private bidders have also been struggling to raise the necessary finance for a buy out.
Mark Chilton, chief executive at Homeowners Mortgages, said that the best outcome for Northern Rock would centre around a private solution.
He commented: “The arranging of finance for a private bid without the government’s guarantee is unlikely to happen until the market stabilises. We are finding the bottom, but it will be too late for Northern Rock.
"The real crux of the issue is that everyone would be better off with a private solution. But the government would have to continue to guarantee financing for at least the next three years and that is looking like political suicide. Political pressures will close the situation.”
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