The Bradford & Bingley is believed to be one of the takeover targets for the growing National Australia Bank.
The Australian group (NAB) already owns other UK companies, including Clydesdale and Yorkshire banks, and is looking to stren-gthen its position with another acquisition.
Aanalysts have put both the Alliance & Leicester and Bradford & Bingley plc in the frame, but NAB is refusing to reveal who it is talking to until a deal is finalised.
A NAB spokesman said: "The information circulating about which banks we are looking at is coming from London analysts' speculation, it's not to do with anything we've released.
"We are looking at a number of options and talking to various other banks or building societies."
A B&B spokesman also refused to be drawn on "speculation and rumour."
Shares In B&B soared today, peaking at 333p before dropping back to 321p at noon.
NAB will be able to push ahead with a dual stock market listing, in London and Sydney, if it finds a British bank to accept a friendly bid.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article