Skipton dismissive of supermutual rumour

The West Bromwich, Skipton, Norwich & Peterborough and Principality building societies could all get bids from JC Flowers as it seeks to build a mutually-owned lender with a partial stock market listing modelled on France’s Credit Agricole.

A spokeswoman for Skipton Building Society said it would be inappropriate to comment as there was no substance to this “speculation.”

JC Flowers could not immediately be reached for comment.

The buyout firm, founded by former Goldman Sachs banker Christopher Flowers, in August unveiled plans to take a 50m stake in building society Kent Reliance, and said it expected to clinch similar deals.

Building societies left facing a capital shortfall by the financial crisis have found it more difficult than listed banks to raise fresh funds, as they cannot access public equity markets.

It has driven a round of consolidation in the mutual banking industry, with Nationwide snapping up ailing rivals the Cheshire, Derbyshire and Dunfermline building societies.

JC Flowers is best known in Britain for an unsuccessful attempt to buy Northern Rock shortly before it was nationalised in February 2008.