** A group led by Richard Branson’s Virgin Group was selected as the preferred bidder to rescue UK’s Northern Rock Plc and plans to repay $22.6 billion to the Bank of England. U.S. finance company GMAC had been eyeing Northern Rock with the aim of combining it with its troubled mortgage lending arm Residential capital LLC, sources told Reuters last week. Now, GMAC has to find a new plan.

** Rio Tinto is scrambling to fend off an unwanted $120 billion takeover from mining rival BHP Billiton Ltd. Rio Tinto, strident that it is better as a standalone firm, said it would spend $2.4 billion on new mines, raise its dividend, and raise billion of dollars from asset sales.

** Sears Holdings said it offered $6.75 per share for Restoration Hardware. The specialty store, which already agreed to be acquired by Catterton Partners for $6.70 a share, refused to enter into a confidentiality agreement Sears said in an SEC filing.

** JPMorgan became the latest casualty in the subprime credit fallout. The firm plans to cut about 100 subprime mortgage jobs in California, according to a filing with a California labor agency.

** British Airways will not exercise its option to increase its stake in Spain’s Iberia it said on Monday, possibly ending its 3.4 billion euro ($5.05 billion) pursuit for the airline with private equity group TPG.

** Dubai International Capital, a private equity company owned by the ruler of Dubai, said it has made a “substantial investment” in Sony Corp, boosting the shares of the Japanese electronics and entertainment firm.