RAB Capital, one of the biggest investors in Northern Rock, has written to shareholders in the troubled bank ahead of an extraordinary meeting on January 15 urging them to back resolutions tabled by it and its fellow hedge fund SRM Global.

Philip Richards, chief executive of RAB Capital, which in recent weeks has increased its stake in the stricken mortgage lender to almost 8 per cent, told the shareholders that their views and interests “appear overshadowed by political considerations”.

He also said that RAB and other unnamed shareholders were willing to take part in the underwriting of a rights issue to recapitalise Northern Rock on the basis that the company remained in its present form.

Mr Richards said that the Northern Rock board should not be allowed to complete any “material corporate activity” without the backing of a simple majority of shareholders and that he hoped to win the support of the bank’s 140,000 private investors.

The resolutions tabled by RAB Capital and SRM Global would, if passed, block the board from selling assets worth 5 per cent or more of the company’s value without the approval of investors, prevent the purchase of assets worth more than 20 per cent of the value of the company and stop it issuing new shares above certain thresholds.

In an attempt to reinforce the need for shareholders to vote in favour of the four resolutions at the extraordinary meeting, Mr Richards wrote that “the board has publicly acknowledged it is under political pressure” and that it had “no collective track record of success in managing the company”.

The hedge funds, the two largest shareholders in Northern Rock, called for the meeting after complaining that the bank was paying insufficient attention to shareholders. Some shareholders are also thought to be keen to have a visible platform from which they could then criticise Northern Rock for the length of time that it is taking to complete the sale process.

The bank’s board, led by Bryan Sanderson, the chairman, has criticised the resolutions, saying that they could hold up a sale and derail a rescue.

RAB Capital increased its stake in Northern Rock from 7.59 per cent to 7.7 per cent on the day that Mr Richards sent his letter. The hedge fund said that it bought 200,000 shares at 85p each, taking its holding to about 32.42 million shares.

Sources said yesterday that the chances of a sale of Northern Rock as a complete entity appeared to be more remote. They said that nationalisation or a sell-off of parts of the company were the most likely scenarios.

Concerns were also raised yesterday that falling house prices could scupper the sale. A sliding housing market would reduce the quality of the Northern Rock mortgages on which any rescue finance was secured, making it increasingly difficult to find funding.

It is understood that Goldman Sachs does not plan to provide financing to Northern Rock’s lenders, despite a report at the weekend claiming that the investment bank was close to completing a £15 billion financing package for use by rescue bidders.

The Government brought in Goldman Sachs before Christmas to see if there was a potential financial package that would fund a private purchase of Northern Rock by either Sir Richard Branson’s Virgin Group or its rival bidder Olivant.

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