Private equity group JC Flowers, which yesterday stepped up efforts to muscle in on the auction of UK lender Northern Rock, is reportedly mulling an offer for Irish Nationwide Building Society.

The US buyout firm has joined forces with Icelandic bank Kaupthing to examine the feasibility of a bid for Irish Nationwide which could be worth €1.5bn ($2.2bn) according to Irish daily The Irish Times. JC Flowers was unavailable for comment.