Much speculation surrounds a possible bid by Tesco for Northern Rock, as the Government attempts to sell the nationalised lender before the next general election.
The Times reported that Gordon Brown aims to sell Northern Rock back to the private sector at a profit, to prove to the public that his rescue was successful. Mr Brown is reportedly anxious to get the credit, in case a Conservative government does after the election.
The sale is not affected by politics, rather a desire to make the best decision for the taxpayer and for financial stability, a Treasury spokesman stressed.
Virgin has once again expressed interest, having previously tried to buy the company. Private equity firms have also made their interest known. It is believed that the Treasury is not currently in any talks with potential buyers.
A sale of Northern Rock is the preferred option over a flotation, as it would be quicker.
The Treasury has created plans to segregate the good and bad assets in order to make it more attractive to potential buyers. The severely toxic assets are likely to remain in the Government's ownership, it was reported.
