A report suggested that it was in ‘preliminary discussions with selected parties’ but indicated that this would not determine a sale.
During the week, shares in Northern Rock continued to fluctuate, dropping by over 50 per cent, before increasing 11.59 per cent, following buyout speculation. Reports have suggested that 12 financial institutions had been put off buying the ailing lender, with prospective buyers unable to obtain significant funding.
In a statement to the Stock Exchange, a spokesperson confirmed that the lender was looking at the market options.
Northern Rock also confirmed that it is to cancel the intended dividend to shareholders as a result of the regulator and the Treasury’s instructions not to make the £59 million payout.
However, Nationwide indicated that the recent market turbulence had not impacted on house price growth, with its study suggesting that house prices rose by 0.7 per cent in September.”
"As a result, highly leveraged borrowing will remain less attractive and lending volumes in this segment may decline."
Get the daily news delivered to your inbox
Find the latest industry jobs
Register for the next forum
