French losses have dragged Egg into the red

Prudential, which owns 79% of Egg, put the internet bank up for sale just under a fortnight ago, saying it was in preliminary talks.

Egg has been in and out of profit, but an expensive European expansion has weighed on its balance sheet.

Investors have speculated that a large US credit company and several major UK banks could be interested in Egg.

Market rumours have singled out US credit card firm MBNA and banks Lloyds TSB, Royal Bank of Scotland and HSBC as potential buyers of Egg.

No crowing

All three have declined to comment.

Prudential said it had received several "unsolicited indications of interest" and had "now begun a process that will give a number of potential purchasers an opportunity to make a proposal".

Egg has 3 million UK clients and is valued by the stock market at roughly �1.5bn.

The main source of Egg's current woes is France, where the company bought an online bank in 2002.

Take-up of Egg's French credit card has been far poorer than expected, and the venture chalked up a �70m loss in the first nine months of 2003.

News that interest in Egg is growing failed to lift its shares or those of Prudential; both stocks followed the London market's downward trend on Monday morning.