It is reported that Richard Branson's Virgin Group may be forced to pay as much as £200m to the British government if it succeeds in rescuing Northern Rock.
The government is understood to be pushing for a better deal for UK taxpayers under Virgin's offer as the group hammers out the final details ahead of Saturday's reported deadline for revised proposals.
The Financial Times says that it is thought that the British government is hoping to secure between £100m and £200m if Northern Rock is revived within three years.
Virgin's bid is still thought to be in pole position for the troubled bank after Northern Rock's management were reportedly told that their 'self-help' proposal did not come up to scratch.
Both groups are now thought to be working on improved offers, but the government has confirmed that nationalisation is still very much an option on the table.
