Billionaire Buffett 'could join bid for Northern Rock'

LONDON (AFP) — US billionaire investor Warren Buffett could emerge as a buyer for troubled British bank Northern Rock, according to a media report on Sunday.
The Sunday Telegraph, which did not name its source, said that Buffett had held talks with various US private equity groups that are interested in buying the bank, which is mulling its options after a severe funding crisis.

JC Flowers, Cerberus and a further consortium comprising Olympus Partners and Five Mile Capital, have all discussed a deal with Buffett's advisors, the paper added.
Northern Rock has borrowed an estimated 25 billion pounds (34.8 billion euros, 51.5 billion dollars) in emergency funds from the Bank of England since September, when the bank fell victim to the global credit crunch.

Two other potential buyers -- a consortium fronted by British billionaire Richard Branson's Virgin Group, and investment firm Olivant Advisors -- have already submitted bid proposals to the bank.

The Observer newspaper reported Sunday that Branson and Olivant were leading the race to buy Northern Rock, citing well-placed sources familiar with the matter.
However, the bank could face a temporary nationalisation if the government is unable to agree terms over the repayment of emergency borrowing, the paper added.
Northern Rock had said last week that all proposals received had materially undervalued the group.

Last September, thousands of panicking Northern Rock customers rushed to withdraw their savings after news of the Bank of England bail-out.
The clamour subsided after the British government vowed to guarantee all existing and new deposits at the bank.