Northern Rock shares up on reports

Shares in Northern Rock climbed over 10 per cent in London today after a report that two further private equity firms had expressed…

Shares in Northern Rock climbed over 10 per cent in London today after a report that two further private equity firms had expressed an interest in the mortgage lender.

The bank's volatile stock was up 10.4 per cent earlier this morning at 175 pence, valuing the bank at just over £737 million.

The Wall Street Journalreported that the Blackstone Group and Apollo Management had both expressed interest in Northern Rock last week.

Several bidders have expressed interest in Northern Rock, which has been in crisis since troubles on the wholesale funding market forced the Bank of England to extend an emergency loan facility, triggering a run on the bank's deposits.

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Sources said last week that Northern Rock's advisers are in talks with US buyout firm JC Flowers & Co, while Cerberus Capital is also considering a move.