Virgin still in talks over Northern Rock

The Virgin consortium vying to buy out troubled mortgage lender Northern Rock has not yet agreed funding for the ban.

Talks between Virgin and its bankers – Citigroup, Deutsche Bank and Royal Bank of Scotland – only took place last week, the Telegraph reported, citing sources. Virgin is relying on these institutions to provide it with £10-£15bn to pay back some of the £25bn or more that Northern Rock has borrowed from the Bank of England.

Banking sources stress that these talks are still at an early stage.

Yesterday Deutsche denied press reports that it is threatening to walk away from the deal.

“Deutsche Bank is continuing to talk to Virgin and the tripartite authorities,” a spokesman for Deutsche Bank said.