U.K. Financial Investments Ltd. and Northern Rock Plc, the government-owned savings and mortgage bank, this week begin work to select an adviser for a possible sale of the company.
“An adviser will be appointed to work with UKFI and Northern Rock to evaluate strategic options for the company,” Brian Giles, a spokesman, said in a telephone interview today.
Northern Rock was nationalized in February 2008 after a shortage of funding the previous year made it the first U.K. bank to suffer a run in more than a century. In November, Northern Rock Chief Executive Officer Gary Hoffman left the bank to join NBNK Investments Plc, which aims to build a bank through acquisitions of entities such as Northern Rock.
Goldman Sachs Group Inc. and Bank of America Corp. have been contacted to prepare for a possible sale, the Sunday Telegraph reported yesterday. Giles declined to comment.
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