The Wall Street Journal-20080214-Northern Rock Proposals Due

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Northern Rock Proposals Due

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LONDON -- Potential acquirers of Northern Rock PLC have to rework their proposals by tomorrow to be in time for a state-aid submission to the European Commission, people familiar with the matter said.

European Union rescue aid for the U.K. mortgage bank runs out March 17. After that, the U.K. government has to gain EU approval for longer-term aid.

The government believes a plan from a consortium led by Virgin Group PLC is the better of two potential private-sale options, these people said. Virgin Group is competing against a plan from Northern Rock's management.