A consortium of venture capitalists is considering making an offer for struggling British nursing homes operator Care First Group plc, HSBC Investment Bank said yesterday. HSBC is financial adviser to the consortium which includes Mr Chai Patel, a former chief executive of Care First who quit the group two months ago after policy disagreements with the chairman, Mr Keith Bradshaw.

Earlier yesterday US venture capital group E.M. Warburg, Pincus & Co confirmed it was also holding talks with Care First following last week's hostile £241 million bid by the privatelyowned medical insurance group BUPA Finance plc.

BUPA said yesterday it was still seeking a recommendation from Care First board for its 150p per share bid. BUPA said it believes its offer fully values the group but added that the offer could not be "characterised" as final under City rules.

Care First rejected BUPA's bid last Wednesday, saying it undervalued the company and had received interest from other unnamed parties.