Shares in embattled UK mortgage lender Northern Rock have tumbled in London, losing early gains on rumours of a cut-price takeover bid.
This came after share sales from two investors reignited concerns over its future.
The shares closed down 16% at 263 pence, having earlier hit a record low of 246.25p.
Initially the bank saw its shares jump to a high of 335p, boosted along with the rest of the banking sector by hopes that a big cut in US interest rates would rescue capital markets and also helped by signs that a run on its deposits has eased.
Traders explained the sudden drop by citing speculation of opportunistic cut-price bids for Northern Rock from mortgage bank HBOS or from Lloyds TSB, with possible offers rumoured at 200p a share or below.
Baillie Gifford, the bank's top shareholder, has cut its stake of almost 6% to below 5%. Lloyds TSB trimmed its stake to just below 4%.
