Northern Rock shares jumped almost 14 per cent this morning after a formal statement last night that it had been approached by several potential bidders. The news came as the beleaguered bank said it had abandoned plans to pay a £60 million dividend to shareholders.

The shares rose to 185p after falling to 163p yesterday before the announcement.

The bank said last night that it was cancelling the planned 14.2p-a-share interim dividend due next month. In a statement to the London Stock Exchange, Northern Rock said that it had received “a number of approaches regarding a variety of potential transactions, including the possibility of an offer being made for the company”.

However, it emphasised that no bid price had been discussed. It said: “The board believes that it would not be appropriate to make any interim dividend payment until it can make a full announcement regarding the outcome of discussions with other parties and the development of the business model.”

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One approach was made by José María Ruiz-Mateos, a Spanish businessman who, with compatriots, wanted to buy a controlling stake in Northern Rock, it emerged. However, Mr Ruiz-Mateos was convicted of a criminal offence in 2005 and it is understood that the Northern Rock board is more hopeful of a deal from an anonymous potential bidder.

Barclays emerged as a 5 per cent shareholder but the shares were held mostly on behalf of individual clients rather than on its own books.

Before the U-turn last night Northern Rock was set on pushing ahead with the dividend, which was announced on July 25 with its interim results. MPs on the Treasury Select Committee had attacked the decision to pay out cash to shareholders while taxpayers’ money was being used to provide emergency liquidity to the bank. Northern Rock has drawn on £3 billion of the lender-of-last-resort facility provided by the Bank.

RAB Capital, the hedge fund group with a 6 per cent stake in Northern Rock, criticised the decision to cancel the dividend. “We disagree with the decision,” the asset manager said. “Frankly, we’re tempted to agree with the analysis by some in the press that the Bank and the Treasury would like to see Northern Rock shareholders wiped out.” However, other shareholders are thought to be more sympathetic. Before the cancellation last night the Association of British Insurers, which represents big institutional investors, said that the decision to pay was up to the board, but that it should consider all factors, including how paying out the dividend might reduce the value of the company.

Mr Ruiz-Mateos wrote to Northern Rock last Friday, saying that he represented Spanish investors who would be interested in acquiring a controlling stake in the bank. Other than an acknowledgement of its letter, Nueva Rumasa, Mr Ruiz-Mateos’s company, has had no further communication with Northern Rock.

Nuevo Rumasa paid €188 million (£132 million) in May for the Spanish operations of Parmalat, the Italian food company that almost collapsed in 2003 after the uncovering of accounting fraud.

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