A NUMBER of potential bidders are thought to be poised to make an offer to buy one of the region's premier companies.

Rumours have been growing over the past week that Northumbrian Water - which employs 2,200 staff from its headquarters at Pity Me, on the outskirts of Durham - is to be put on the market, with an asking price of about £2.3bn.

French utility group Suez has commissioned a report on the viability of selling Northumbrian Water, which has sparked industry speculation about the future of the company.

Since the announcement last week, Candover, The Royal Bank of Scotland and WestLB have already registered an interest in the water company.

It is believed Cheung Kong Infrastructure, which lost out in a bidding war for Wessex Water, could also be interested, along with Australian Bank Macquarie.

Other water companies, such as United Utilities, may also be keen, but strict regulations on company mergers mean it would have to link up with a financial backer to enter the bidding.

Suez has said it want to cut its debts by a third, but Northumbrian is one of its prized assets.

It may be more likely that Essex and Suffolk Water (ESW), which has been part of Northumbrian since April 2000, would be sold to a financial institution.

The potential sale comes as Suez's rival, Vivendi Environment, is waiting for a Government decision on its £2m bid for Southern Water.

The uncertainty surrounding that acquisition would appear to rule out any bid for Northumbrian.

No one at Northumbrian Water could be contacted for a comment last night.