Scotsman- Northern Rock shares rose almost 12 per cent after reports that hedge funds were moving in for a bid for the troubled bank.
The mortgage lender, which was bailed out last month by the Bank of England, surged after it was revealed hedge fund JC Flowers had secured funding of up to £15 billion for a possible takeover. Shares closed up 16.2p or 11.95 per cent on 151.8p, after touching a low of 132p on Monday.
The US buyout firm set up by former Goldman Sachs banker Christopher Flowers is believed to be conducting due diligence on Northern Rock, while fellow hedge fund Cerberus is also believed to be mulling over a bid.
Northern Rock is also preparing for a bid, confirming yesterday that it had hired Citigroup to work along side Merrill Lynch on acquisition talks.
