Hedge fund RAB nudges up Northern Rock stake

LONDON (Reuters) - RAB Capital, a top investor in Northern Rock, has bought shares in the bank for the second time in two days, raising its stake to 7.5 percent ahead of a January shareholder meeting, a filing showed on Friday.

RAB and hedge fund SRM Global, the beleaguered mortgage lender's largest shareholder, had called for Northern Rock to hold an emergency shareholder meeting over its future and the bank gave in last week, setting a date of January 15.

SRM and RAB have tabled resolutions that, if passed, would give shareholders the power to block any moves to sell more than 5 percent of the bank's assets, issue large chunks of new shares or buy any assets -- powers Northern Rock's board say would hinder a swift solution to the lender's problems.

SRM has also been increasing its stake in the bank this month and now owns 10 percent of the lender. Last Thursday, RAB raised its stake to just over 7 percent.

Northern Rock's NRK.L volatile shares were down 2 percent at 3:30 p.m. in thin pre-holiday trading, changing hands at 84 pence.

Northern Rock is seeking a rescuer after it became Britain's most public casualty of this year's global credit crisis.