AUSSIE BANK TO BID FOR TROUBLED BRITISH LENDER

MELBOURNE, Jan 5 (Bernama) -- National Australia Bank (NAB) has emerged as
the frontrunner to pay up to A$2.25 billion (RM6.81 billion) to buy Northern
Rock, the troubled British lender.

NAB, Australia's fourth-largest bank by market capitalisation, is on the
verge of appointing advisers to plan a bid for Northern Rock in the next few
months.

It is understood that Credit Suisse, Lazard, Citi and Morgan Stanley have
pitched to lead the bank's campaign to buy the "good" assets of Northern Rock,
which has been divided into a "good bank-bad bank" by the British government,
The Australian newspaper reported.

A deal could cost NAB up to A$2.25 billion, based on the value of the most
recent capital injection by the British government into Northern Rock, which
was nationalised in 2008.

The newspaper said the Virgin Money group, backed by Richard Branson, and
Spanish bank BBVA are expected to be NAB's major rivals in the race to buy the
bank.

NAB refused to comment on Monday on the speculation that emerged in London
at the weekend.But a full-scale bid was not ruled out by several market
participants in Australia Monday, the newspaper said. (A$1=RM3.09)
-- BERNAMA
RT