04-10-2007
Northern Rock shares rise on buy-out speculation
Shares in Northern Rock have risen amid expectations of a possible buy-out, it has emerged.
According to reports, shares in the mortgage lender have risen by nine per cent during trading today (October 3rd), after news that private equity firm JC Flowers could be poised for a takeover bid.
However, according to the Financial Times, should a purchase not go ahead, Northern Rock's board may instead choose to place the bank into administration.
JC Flowers is believed to have obtained £15 billion in funding for the possible takeover and the firm is known to be taking advice from Credit Suisse.
In related news, it has emerged that a number of British banks are choosing to borrow funds from the European Central Bank rather than the Bank of England, according to the Times.
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