LONDON, Oct 4 (Reuters): US investment bank Citigroup has offered to provide funding to potential buyers of stricken British bank Northern Rock as part of its advisory role, according to people familiar with the matter.
The news that financing is becoming more available, coupled with interest from more than one potential suitor, lifted Northern Rock's shares more than 10 per cent to build on a 12-per cent rebound for the battered shares Wednesday.
Citigroup, which was appointed as an adviser to Northern Rock Wednesday, has been brought in to provide financing to potential suitors, the sources said, although they declined to say how much the bank would lend.
One of the sources said Northern Rock was working with other banks to provide similar lines of finance.
The Daily Telegraph said Citigroup would offer funding of "significantly more than 5 billion pounds" and possibly double that amount, to show that Northern Rock can still raise funds.
Northern Rock lifted as Citigroup offers funding
FE Team | Published: October 05, 2007 00:00:00 | Updated: February 01, 2018 00:00:00
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