Hedge funds plot Northern Rock raid Sale would generate huge windfalls for buyers - but nothing for shareholders

From: The Sunday Telegraph London | Date: September 23, 2007| Author: | Copyright information

THREE of the world's most powerful hedge funds are plotting a break-up of Northern Rock that could generate profits of hundreds of millions of pounds from the stricken mortgage bank - but leave shareholders with virtually nothing.

Chris Flowers, the former Goldman Sachs banker who made a fortune from the rescue of a Japanese bank seven years ago, is among the group looking at a possible deal. Cerberus, the vulture fund that owns Chrysler, is also part of the group, along with Citadel, one of the funds that backed Malcolm Glazer's takeover of Manchester United.

The proposed deal would see the ...

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