An EGM will set in motion a chain of events designed to stop Northern Rock (NRK) being sold on the cheap. Scheduled for this month, details of the emergency meeting – called by hedge funds SRM Global Fund and RAB Special Situations – were circulated just prior to Christmas.

A resolution will be put to the meeting proposing to change Northern Rock's articles of association to stipulate that any disposal of more than 5% of the company's assets be put to a shareholder vote. This should allow the hedge funds – which have the backing of tens of thousands of private investors – to block unsatisfactory offers for the stricken bank. The risk, however, is that if shareholders block an offer the bank may be nationalised.