Coventry was among firms named as official bidders for Northern Rock last week, having been believed to be making active investigations into a takeover bid.
However, in a statement, the mutual said: “Having noted press speculation, Coventry Building Society can confirm that it has not entered a bid in connection with the sale of Northern Rock.”
In addition, Yorkshire Building Society has also decided against making a bid, after originally signalling an interest in Northern Rock in May.
It said: “We firmly believe that the remutualisation of Northern Rock would enhance financial stability and increase diversity and choice for consumers.
“Whilst our overall strategy is to take advantage of opportunities that we consider to be in the best long term interests of our current and future members, we do not think that, at this time, we should pursue this transaction.”
The decision of the two mutuals to withdraw from the sale of Northern Rock leaves just a handful of bidders in the frame, including Virgin Money, with the government aiming to have a buyer in place by the end of the year.
