The newspaper said Northern Rock was seeking to hire new top talent to strengthen its management team and hoped this would help it secure a financing deal that would allow it continue as a stand alone entity.
LONDON (Reuters) - The board of Northern Rock is considering mounting a rescue plan to save the ailing British bank from nationalisation or takeover, the Sunday Times reported.
The newspaper said Northern Rock was seeking to hire new top talent to strengthen its management team and hoped this would help it secure a financing deal that would allow it continue as a stand alone entity.
Northern Rock declined to comment.
The bank is seeking a rescuer after it became Britain's most high profile casualty of this year's global credit crisis.
!ADVERTISEMENT!It has said in recent weeks it is keeping all its options open, which would include an internal rescue, but sources familiar with the situation have said these are backups if a commercial sale falls through.
The Observer reported on Sunday that the Treasury had drawn up a plan to take a stake in Northern Rock and to parachute in new management.
A Treasury spokesman said all options were on the table but sources familiar with the matter said such as deal was unlikely.
Northern Rock has had to borrow at least 25 billion pounds ($49.9 billion) from the Bank of England.
A consortium led by Virgin Group and a rival investment group called Olivant, which is led by former CEO of Abbey bank, Luqman Arnold, are in advanced bid talks with Northern Rock's advisers and the UK Treasury with a view to striking a deal in January.
Some politicians and industry experts believe nationalization of the bank or some form of public administration could be the best -- or only -- option, considering the tattered image of Northern Rock.
(Reporting by Tom Bergin, Sumeet Desai and Steve Slater; Editing by Richard Hubbard)
