Turbulent ride for Northern Rock

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Shares in Northern Rock have had a roller-coaster time in Monday trading, on the back of reports the bank may struggle to find a buyer.

Shares fell 14% in early trade, then moved 5% ahead, fluctuated over midday, and finally closed down 11.5%.

Northern Rock's shares have tumbled in the past week after the Bank of England said earlier this month it was helping the bank through a credit crisis.

That kicked off a run by depositors who queued up to withdraw their funds.

And, despite the government's pledge to guarantee all Northern Rock deposits held in accounts as of midnight, 19 September, its share price continued to fall at the end of last week.

Negative publicity

Following the run on the bank, Northern Rock's future as an independent company is considered to be untenable.

This is despite the fact that the bank has said business has returned to normal.

There are concerns about whether a buyer will emerge given the negative publicity surrounding the firm and worries over its future business prospects.

And media reports at the weekend said that at least 12 of the UK and Europe's biggest banks had now decided not to buy the Newcastle-based lender.

Northern Rock's shares have fallen from a high of £12.51 in February.

Meanwhile, the banks says it still intends to pay shareholders an improved dividend despite its recent worries.

Northern Rock says it will pay the 14.2p a share dividend announced on 25 July, for all investors on the share register by the end of Friday.

The lender is understood to have taken legal advice over the dividend payment.