Tesco is potential bidder for Northern Rock-paper

LONDON, June 30 (Reuters) - British retailer Tesco (TSCO.L) has emerged as a potential bidder for nationalised bank Northern Rock (NRKx.L), the Times reported in its Wednesday edition.

The paper said Britain's biggest retailer has shown provisional interest alongside private equity funds and Richard Branson's Virgin Group. Branson told Reuters last week he was still keen on Northern Rock. [ID:nN22521062]

Tesco is eager to cash in on growing disillusionment with traditional banks and in March announced plans to open bank branches in 30 of its stores. [ID:nLT662239]

Northern Rock became Britain's first high profile victim of the credit crunch when it was nationalised in February last year.

The Times said the government wants to sell the bank before the next general election, which must be called by mid-2010. A spokesman for the Treasury said the government was focusing on getting European Commission approval for its restructuring plans for Northern Rock. The Commission last week said it wanted more information from the government on state aid for the bank. [ID:nLQ888052]

A spokesman for Tesco declined to comment on the report. (Reporting by Victoria Bryan; Editing by Steve Orlofsky)