Branson's stock used for funds

British entrepreneur Sir Richard Branson said he used his stake in Virgin Atlantic, the UK-based owner of Virgin Atlantic Airways, to raise money to finance the expansion of his mobile phone and train businesses, the Observer newspaper has reported.

Sir Richard's bank, Lloyds TSB, has a claim on "all stocks, shares bonds" and other financial assets of Virgin Atlantic, the Observer said, citing documents filed by the millionaire last month.

Sir Richard, whose cut-price Virgin Blue airline wants to operate in New Zealand and across the Tasman, told the paper the transaction was "routine."

The transaction, which might allow the bank to take control of Sir Richard's 51 per cent stake in the airline in certain circumstances, "will fuel speculation about the state of the Virgin empire," the paper said.