Virgin prepares bid for RBS branches, reports

21st Mar 2010 12:09

Richard Branson's Virgin Money is reportedly preparing a first round bid for Royal Bank of Scotland's 320 English branches. Virgin Money has hired advisers Greenhill, which confirms Virgin's interest in being considered a serious contender for the part-nationalised lender's high street banking network, according to the Sunday Telegraph.Clydesdale Bank-owner National Australia Bank and Spanish giant Santander, which owns Abbey, Alliance & Leicester and the savings arm of Bradford & Bingley, are also said to be in the running. Emergency funding provided by the Bank of England is currently keeping the business going, so the successful bidder must replace that within weeks. It must also find about £2bn in capital to support the £24bn loan book. Santander and Virgin both have deep enough pockets to finance the acquisition, experts say. RBS was ordered to sell the branches by the European Commission as punishment for accepting state aid.