THE Northern Rock Foundation - the largest stakeholder in the beleaguered bank - has launched a campaign to stop the company being sold off cheaply.

The charitable operation of Northern Rock has hired financial advisors and written to shareholders in an attempt to ensure any offer for the Newcastle lender is "fair and reasonable".

It has also contacted Government ministers, MPs and officials to emphasise the work that the importance of the foundation, the biggest donor to charity in the North, is taken into account during negotiations.

Their campaign was yesterday backed by trade union Unite, which also pledged to write to MPs, councillors and high-profile business figures and sports personalities across the North-East to ensure Northern Rock's future as an independent bank.

The development comes as speculation continues to mount that US private equity firm JC Flowers has raised £15bn to fund a possible takeover.

Shares in the company continued their recovery yesterday after hitting an all-time low of 132p on Monday, closing at 161.7p last night.

The Northern Rock Foundation has about a 15 per cent stake in the bank.

Alastair Balls, chairman of the trustees, said: "While we understand the need for an early resolution to the bank's operational difficulties, we are concerned to see that a transaction is not concluded on unfavourable terms, simply to meet a self-imposed timetable, to the detriment of the charity, its work and jobs in the North."

Earlier this week, a group representing Northern Rock's shareholders also expressed concern at a possible sale of the lender at a time when its value is so low, with its market value tumbling to about £571m since being forced to seek emergency funding from the Bank of England two weeks ago.