Morgan Stanley to get Northern Rock UKFI deal

UK FINANCIAL Investments, the government body in charge of managing public stakes in bailed-out institutions, is soon to appoint Morgan Stanley to advise on the sale of the Northern Rock “good bank” later this year.

The sale will follow the auction of 318 RBS branches sold to Santander UK last summer for £1.65bn and is likely to attract a similar set of bidders. Those interested are thought to include Virgin Money, Tesco Bank, National Bank of Australia and private equity group JC Flowers.

If Morgan Stanley does sign the deal, according to Sky, it stands to earn £2m in fees.