Allen & Overy (A&O), Herbert Smith and Ashurst have taken roles on Virgin Money's £1bn bid for Northern Rock, the retail bank that was nationalised in 2008 after becoming one of the most high-profile UK casualties of the financial crisis.

Virgin Money, part of Richard Branson's Virgin Group business conglomerate, has instructed longstanding adviser A&O on the bid. The magic circle firm is fielding a team led by corporate chief Andrew Ballheimer.

The company submitted an initial expression of interest in Northern Rock in July, and last week put a formal offer on the table, with the Royal Bank of Scotland (RBS) providing financing.

RBS in turn instructed the bank's former UK corporate and restructuring head Lee Doyle – now a partner at Ashurst – to advise it on the bid.

As Legal Week reported in June, Freshfields Bruckhaus Deringer has taken the lead role to jointly advise the Northern Rock and its owner, UK Financial Investments, the body which manages the Government's stakes in UK banks.

Corporate partner Barry O'Brien, a longstanding adviser to the Newcastle-based lender's board, is leading the team advising Northern Rock, working alongside global head of finance Alan Newton.

Herbert Smith, meanwhile, has taken a role for Virgin Money's financial adviser Greenhills.

One adviser commented: "The main law firms involved are Freshfields and A&O – all the other firms have taken minor roles that will not generate a lot of fee income."

It is understood that NBNK, a new banking venture co-founded by Lloyd's of London chairman Lord Levene, has also submitted a bid for Northern Rock.

NBNK is also currently bidding for 630 bank branches that Lloyds Banking Group has been ordered to dispose of by regulators. Linklaters is advising Lloyds on the sale.

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