Beleaguered mortgage lender Northern Rock warned of more shareholder misery today after admitting rescue proposals were "materially below" the firm's current value.
Northern Rock statement
The Newcastle-based group said it had not received a full offer for the business, with would-be suitors interested in buying parts of the business or injecting cash into the lender.
Northern Rock — valued at more than £5 billion in February — is currently worth just £558 million.
The group said: "The value to shareholders from any of the proposals remains highly uncertain and will be dependent, among other things, on when and if there is an improvement in market conditions."
The group was forced to seek emergency funding from the Bank of England two months ago after soaring costs — and had borrowed more than £20 billion so far.
Chief executive Adam Applegarth resigned on Friday.
A Treasury statement said those parties interested in Northern Rock "should not assume" that Bank of England funding would be available beyond a sale or the expiry of the facility in February.
But it added it was "willing to discuss" any proposals which envisaged an ongoing role for the authorities.
PA