Paragon Confirms It has Received Bid Approaches

British buy-to-let mortgage lender Paragon said it is in talks with potential buyers after receiving takeover approaches.

"In order to determine whether any of these approaches may form the basis for an acceptable offer or offers, the board has entered exploratory discussions with, and is providing due diligence to, the parties concerned," Paragon said in a statement.

The company did not name the parties involved.

The Financial Times reported on Tuesday that the lender is in bid talks with US private equity firm Blackstone.

The FT said the talks were being led by David Blitzer, the head of Blackstone's London office, citing people familiar with the situation.

Shares in Paragon have fallen by almost 90 percent in a year as the credit crunch has raised the group's funding costs and eroded its profitability, according to the FT.