US firms eye Northern Rock buy-out: WSJ report
US investment funds Apollo Management and Blackstone have shown interest in buying out the crisis-hit British bank Northern Rock, the Wall Street Journal reported on Monday.
By Agencies |
NEW YORK: US investment funds Apollo Management and Blackstone have shown interest in buying out the crisis-hit British bank Northern Rock, the Wall Street Journal reported on Monday.
The two firms showed interest separately last week, the paper said, citing people close to the matter, although spokesmen for the companies declined to comment.
It said the takeover approaches could prompt an auction for the ailing British lender, where customers rushed to withdraw their savings in a crisis sparked by the collapse of the US sub-prime mortgage market.
The panic came after Northern Rock, Britain's fifth-biggest mortgage lender, turned to the Bank of England for emergency funding.
Two other US firms have reportedly been in detailed talks with the troubled bank: J C Flowers & Co and Cerberus, the Journal said. Another, Merrill Lynch, has been advising Northern Rock on its strategy.
British media on Sunday reported that US financial giant Citigroup Inc was set to lend Northern Rock up to 10 billion pounds to help potential buyers finance the purchase.
The two firms showed interest separately last week, the paper said, citing people close to the matter, although spokesmen for the companies declined to comment.
It said the takeover approaches could prompt an auction for the ailing British lender, where customers rushed to withdraw their savings in a crisis sparked by the collapse of the US sub-prime mortgage market.
The panic came after Northern Rock, Britain's fifth-biggest mortgage lender, turned to the Bank of England for emergency funding.
Two other US firms have reportedly been in detailed talks with the troubled bank: J C Flowers & Co and Cerberus, the Journal said. Another, Merrill Lynch, has been advising Northern Rock on its strategy.
British media on Sunday reported that US financial giant Citigroup Inc was set to lend Northern Rock up to 10 billion pounds to help potential buyers finance the purchase.
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