Treasury says will advertise soon for N. Rock valuer

LONDON (Reuters) - The Treasury has dismissed speculation it is struggling to find an independent valuer to assess compensation payments to Northern Rock shareholders, saying it would advertise for the position soon.

Shortly after nationalising the mortgage bank in February, the government said it would appoint an outside expert to consider payments to investors, but newspaper reports have said top names from accountancy firms to investment banks have shied away even before a nomination process begins.

"It will be a matter for an independent valuer to establish the value in accordance with ... legislation," a Treasury spokesman said on Wednesday. "A valuer will be appointed through a competitive process."

He dismissed reports of a dearth of interested parties in what is likely to be a politically and legally contentious process. But, with no date for the process to begin, speculation over the Treasury's progress may continue.

One source familiar with the matter said on Wednesday several obvious candidates had indicated they were barred through conflicts of interest or were simply less than keen to participate.

"You are in a no-win situation. The government expects you to value it as if it wasn't a going concern, offering zero, and the hedge funds want four pounds," the source said.

"You risk the wrath of the government or getting involved in lawsuits. Add to that the reputational risk involved."

Big and small shareholders in the country's fifth-largest mortgage lender have reacted angrily to its nationalisation and a legal battle has long seemed inevitable.

Investors argue that assuming the bank was not a going concern when it was nationalised -- as the government plans to do -- is unfair and would make any likely settlement derisory.