SHARES in Northern Rock have slumped by more than a quarter since it emerged that the North-East lender had agreed emergency funding from the Bank of England.
By 3pm, the Newcastle plc's share price had plummeted almost 30 per cent to £4.51, wiping more than £3bn from the stock market value of the firm since shares reached a year-high in February.
Northern Rock has warned that its profits both this year and potentially into 2008 would take a severe hit due to the current turmoil. Full year profits are expected to come in at between £500m and £540m for 2007 - well below analysts original expectations of £647m.
Chief executive Adam Applegarth said: "It is a pretty rotten day for us all, I am bitterly disappointed."
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