Rescue potential for Northern Rock drives up FTSE

Troubled mortgage bank Northern Rock led blue-chip stocks higher today on the back of mounting speculation over a potential rescue for the lender.

Reports that private equity firm JC Flowers had raised £15bn towards a takeover of the company saw shares surge by 12% – a gain of 16.2p to 151.8p - despite analysts cautioning over the prospects for a high-risk deal.