Private equity firm JC Flowers today threatened to walk away from its £3.5bn (€4.3bn) takeover approach for Friends Provident unless the board of the life and pensions firm opens talks by the end of the week.

At least two firm bids for beleaguered British mortgage lender Northern Rock have emerged, but taxpayers in the UK could still end up propping up the company for up to three years.

Northern Rock’s potential rescuer has a strong record of snapping up stricken companies and nursing them back to health, often for big rewards.

A private equity firm has raised £15bn (€21.6bn) for a potential rescue of crisis-hit mortgage lender Northern Rock, it was reported today.