The Bank of England could take its first equity stake in a UK lender for nearly 14 years under a Northern Rock takeover plan tabled by Olivant, the Luqman Arnold-led investment firm that today became the odds-on favourite to win the race to rescue the stricken bank.

Olivant, in a statement to the UK stock exchange, today outlined further details of its indicative proposal to restructure the Rock, which is already the target of takeover interest from a group led by Sir Richard Branson's Virgin Group.