UK business lender Oaknorth Bank in talks to buy UK's Silicon Valley Bank

Oaknorth Bank, a business lender founded by a former Conservative party donor, is in detailed talks with the banking regulator and the government about an offer to buy Britain's Silicon Valley Bank, Sky News has reported. A formal offer will be subject to a due diligence process lasting several days, but Oaknorth hopes to get regulatory approval for its offer as early as Sunday night, the sources said. Oaknorth Bank competes with ADQ, an investment vehicle backed by the Abu Dhabi government, a banker said. Oaknorth Bank, founded by Rishi Khosla and Joel Perlman, hired former chancellor Lord Hammond as an adviser in 2020. Foresight News previously reported that the UK government was trying to push for the takeover of Silicon Valley Bank's UK subsidiary to prevent the shock from spreading across the tech sector, according to the Financial Times. A Middle Eastern buyer with deep pockets has expressed interest. Earlier, according to the British "Sky News" report, the UK's largest commercial bank was given a 24-hour deadline to save the UK's Silicon Valley Bank. Several parties, including London banks, are interested in finalizing a deal, sources said.