Shares in Northern Rock bounced back today after rumours that two private equity firms are due to meet with executives from the mortgage lender to discuss a potential buyout.
Sky News said that private equity firms Cerberus and J.C. Flowers are due to hold talks soon with bank officials about possible take-over bids.
Both have been given permission by regulators to discuss a possible bid for Northern Rock.
Sky, which did not name its sources, also said that Lloyds TSB bank had dropped its interest in the mortgage lender.
Analysts said that rumors were sweeping the market of a rescue bid at 175 pence (US$3.58; 2.52) per share.
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