Reaction to Northern Rock nationalisation

LONDON (Reuters) - The government has said it will bring mortgage bank Northern Rock into public ownership -- the first major nationalisation in decades.

Following are comments on the move:

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ANALYSTS' REACTION

BEAR STEARNS ANALYSTS

"The valuation will be calculated assuming that the bank has not been supported by government loans, and on this basis the shares could have no value."

"This is slightly positive for the sector as the expected managed decline in the Northern Rock balance sheet (and State Aid rules which prohibit organisations from using government assistance to compete) should create less competitive mortgage market conditions."

ALEX POTTER, COLLINS STEWART

"You could have reasonably expected this. The dithering at the start brought this into the range of possibilities and the fact the government spent so long with Northern Rock in a limbo state made it more and more difficult to reach a private sector solution as every day went by."