Troubled mortgage lender Northern Rock said today that its advisers had begun talks with 'a number' of interested parties.
The Newcastle-based group, which has borrowed an estimated £24 billion in emergency funding from the Bank of England since September, said the discussions were to 'clarify' the proposals. Northern Rock said: 'The company is aware that all stakeholders want clarity on the outcome of the strategic review as soon as possible and is therefore progressing the process as quickly as possible.'
The bank, whose advisers include investment banks Merrill Lynch and Citi, as well as private equity giant Blackstone, also confirmed it had received proposals involving an offer 'materially below' its £409 million market value yesterday.
The news hit the group's share price, which was down by as much as 13%, or 13p, at 84 pence early today as shareholders faced up to potential losses. The approach is understood to be from private equity group JC Flowers, whose consortium is planning to pay off £15 billion in taxpayers' cash and clear the rest of the bank's debt burden by the end of 2010 if successful.