Hedge funds SRM Global and RAB Capital over the weekend announced their reasons for blocking the takeover of Northern Rock, saying their bid is still a viable one.

"It is nothing like the "lame duck" that some would have you believe," said the hedge fund SRM in a statement. "Based on the company's stated guidance regarding its valuation, SRM believes that the company's book value is materially in excess of its current share price."

Northern Rock has been after a reasonable bid since it became a casualty in the global credit crisis this year.

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