Goldman Sachs is close to completing a £15 billion financing package to be used by suitors for lender Northern Rock, the Sunday Timesreported, adding details may be unveiled this week.
The paper, quoting no sources, said the deal put together by US investment bank Goldman Sachs was understood to be on better terms than packages being pulled together by rivals including Citigroup and could break the bid impasse.
Northern Rock declined to comment. Goldman Sachs, called upon last month to help put together a financing package, was not immediately available for comment.
Britain's highest profile casualty of the credit crunch is in talks with at least two suitors - investment group Olivant and preferred bidder Virgin - and advisers are confident a deal to rescue the bank can be salvaged in January.
But financing worries have loomed over the deal, with fears of a downturn in the UK housing market making it harder to value the bank and its assets. The threat of nationalisation increased last month after the withdrawal of some potential suitors.
Northern Rock is also set to face its investors on January 15th. The extraordinary shareholder meeting, called by hedge funds RAB Capital and SRM Global, could hand shareholders the right to vote on whether assets can be sold or new shares issued - a move the bank says would further complicate a rescue but which the equity investors say will safeguard their rights.