Virgin Money ready to launch bid for Royal Bank of Scotland

6 April 2010


UK retail banking could be on the brink of some major upheaval with Richard Branson's Virgin Money gearing itself up for a bid for the Royal Bank of Scotland’s branch network.

Virgin is believed to be ready to declare itself as a potential bidder later today, armed with as much as £500 million of fresh cash from billionaire investor Wilbur Ross.

The deadline for bids for the RBoS is today (Tuesday) with the asking price believed to be around £2 billion. Virgin bagged itself a banking licence earlier in the year when it bought the small and twatty Church House Trust for a mere £50 million.

Prior to that, Virgin were linked with a bid for Northern Rock, but interest from Rick Astley, who wants to buy the troubled bank and rebrand it Northern Rick, seems to have muddied the waters.

We made most of that last paragraph up by the way. Other contenders for the RBoS could be Santander, National Australia Bank and Blur.

Again, part of that last paragraph was made up, as this story peters out into nothing much...

TOPICS:   Banking


  • The B.
    They'd be better off buying more companies and merging them with the bank they bought, see Aldermore bank for info on how to do it properly (Virgin tried to buy them too). The only part of Northern Rock worth buying is the offshore branch (Northern Rock Guernsey).
  • Tesh
    You think its a good time to invest in RBS, been wanting to get into shares trading for a while now, think i should start and put a few thousand into RBS shares?
  • The B.
    Depends on whether you want to wait for a long term return or a fast buck, either way it might be worth having a look at spread betting first, you don't get taxed 40% on profits if nothing else, it'll give you an idea of how the markets work and you can generally restrict how much you lose (put a loss limit on any open bets).
  • Nobby
    Dear Richard Branson, Once you have bought the Royal Bank of the bit at the top of England, please could you rename it the "Virgin Vault".
  • Tom P.
    @Tesh, if it's money you can afford to lose, go for it. The shares have nearly quadrupled from a low of 12p. You'd be better off going for a fund that invests in a range of banks and financial institutions.
  • raptorcigs b.
    i fucking hate Briers
  • ZeeRedBaron
    Tesh, I would invest my money in Lloyds Banking Group instead (in fact, I did). They look more promising as they are a little better off than RBS considering they needed less government capital infusion, plus they pay hefty dividends. I estimate LYG should at least double in the next two to three years, so I would hold for about two to three years then dump it unless yous till want to keep the dividend for your portfolio,
  • Tesh
    Thanks for the tips guys, going to start trading shares soon, im 17 but hope to do it my dads name if i cant find somewhere that allows under 18s to trade :)

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment