Three private equity bidders are circling HSH Nordbank, with the German lender expected to be sold for about EUR 200m ($237m).

This is according to sources cited by the Wall Street Journal.

Reuters has reported that a group consisting of Cerberus and JC Flowers is one bidder, with Apollo and Socrates Capital also in the running separately.

It cited sources as saying talks over Apollo joining up with Cerberus and JC Flowers have taken place, but an agreement has not yet materialised.