Shares digital

Shareholders in Northern Rock (NRK) are being asked to contribute 2p for every share they hold to fund a compensation campaign.

The Northern Rock Shareholders Action Group (NRSAG) currently has 4,000 members. It wants to raise more funds to rally further support.

NRSAG spokesman Roger Lawson, says: ‘We have already spent more than £20,000 but more will be needed if we are to have a significant impact on this matter.’

The group has acquired Northern Rock’s share register and written to selective parts of it – it now wishes to write to all the stricken bank’s members.

NRSAG is considering legal action having been in discussions with David Greene, partner at Edwin Coe. Greene represented private investors during the Railtrack compensation case.

Private investors are likely to join institutional investors SRM and RAB Capital in opposing compensation arrangements proposed following last month’s nationalisation of Northern Rock.

The government will appoint an independent valuer to decide on compensation, although has warned investors that it won’t refund them ‘for value which is dependent on taxpayers’ support.’

SRM and RAB are reportedly working on claims. Both hedge funds have pointed the finger at Bank of England governor Mervyn King for being responsible for the bank’s collapse.

For details on how to join NRSAG visit www.uksa.org.uk/

NorthernRock.htm or contact Roger Lawson at roger.lawson@btclick.com or on 020 8467 2686.