A SPANISH wine tycoon last night fired the first shots in the race to take over crisis-hit Northern Rock by confirming he had offered to buy ten per cent of its shares.

Jose Maria Ruiz-Mateos is said to be acting on behalf of a group of Spanish investors who want to build a big enough stake to take control of the Newcastle based mortgage lender.

The flamboyant 76-year-old entrepreneur made his fortune on marketing the sherry Harveys of Bristol and previously owned a range of companies and banks in Spain.

A spokeswoman for Mr Ruiz-Mateos said: "An offer has been made for ten per cent.

"It's being put forward by Mr Ruiz-Mateos personally, backed by a group of investors."

Last night, Northern Rock declined to comment on the latest development, although it has said previously it has received several approaches from interested parties about a possible deal.

Shares in Northern Rock closed at 193.5p, up by 6.32 per cent on Tuesday's price of 182p.

They have rallied slightly on the back of renewed speculation over potential investors.

Earlier in the week, they hit a record low of 163.1p, having been trading at 670p only a few weeks ago.

Northern Rock's woes began after it was revealed it had applied for emergency funding from the Bank of England, in its role as a lender of last resort.

Panicking savers subsequently withdrew £2.5bn from accounts held with the bank.

The subsequent slashing of its share price, wiping a huge chunk off the company's value, has encouraged potential buyers hoping to snap up the bank at a knockdown price.

Meanwhile, the union Unite, which represents many of the bank's 6,500 workers, said it was calling on Northern Rock to be "open and transparent" about its future plans.

National officer Karen Reay said: "The union is extremely concerned that Northern Rock's assets might be broken up and that a consortium of hedge funds has expressed an interest in the bank's mortgage book.

"At a time when speculation about the future of Northern Rock is rife, Unite continues to challenge management to ensure the interests of staff are taken into consideration and their futures are protected.