BDO in the running for B&B valuation

BDO Stoy Hayward is in the running to value nationalised bank Bradford and Bingley, the Independent has reported.

The Treasury is expected to announce the appointment by summer. It is understood that US financial services firm Blackstone is also being considered but KPMG has already been ruled out given it is B&B's auditor.

BDO is already working on the valuation of another nationalised bank - it is being paid £4.5m to value Northern Rock. The B&B job is on a larger scale and so is expected to command a higher fee.

The successful tenderer will have to contact nearly one million investors to obtain information necessary to determine a compensation payment for the nationalisation, in which shareholder stakes were wiped out.

A panel of four chaired by Michael Izza, chief executive of the Institute of Chartered Accountants in England and Wales, will make the selection.