Aldermore has hired advisers to help it plan a potential takeover of the Co-op Bank, Sky News has reported.
The move will see it competing against Shawbroo which Sky News revealed last month had approached the Co-op with a merger proposal.
Sky News has now revealed that Aldermore has engaged investment bankers to structure an offer.
The deals from the challenger banks are both in the region of around £3.5bn.
Other mooted potential bidders include Paragon Bank and OneSavings Bank. Sky News reports that both now appear unlikely to participate in the auction.
Sky News understands that Aldermore intends to table a bid ahead of a deadline set by Co-op Bank’s advisers early next month.
