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Virgin may face bill of £200m

Feb 16 2008 by Bill Gleeson, Liverpool Daily Post

SIR Richard Branson’s Virgin Group may be forced to pay as much as £200m to the Government if it succeeds in rescuing Northern Rock, a report said yesterday.

The Government is understood to be pushing for a better deal for the taxpayer under Virgin’s offer as the group hammers out the final details ahead of today’s reported deadline for revised proposals.

It is thought that the Government is hoping to secure between £100m and £200m for the taxpayer if Northern Rock is revived within three years, according to a national newspaper.

Virgin’s bid is still thought to be in pole position for the troubled bank after the Government reportedly told Northern Rock’s management that their “self-help” proposal did not come up to scratch.

Both groups are now thought to be working on improved offers.

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