Sept. 2 (Bloomberg) -- - Carlyle Group and the U.K. pension fund Universities Superannuation Scheme are backing Virgin Money Ltd.’s bid for Northern Rock Plc, according to a person with knowledge of the negotiations.
U.S. private-equity company JC Flowers & Co. has submitted a rival bid for the unit of the U.K. government-owned bank, which is worth about 1 billion pounds ($1.6 billion), said the person, who declined to be identified as the discussions are private.
Northern Rock, the first U.K. bank nationalized during the credit crisis, divided into two parts last year. Most of the bank’s existing mortgages, including its “Together” loans, are held by Northern Rock Asset Management.
Spokesmen for Virgin Money, Washington-based Carlyle and Universities Superannuation Scheme declined to comment. A Northern Rock spokesman wasn’t immediately available.
Sky News reported the news earlier.
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