Investment banks are lining up to work with the 10 private equity groups that have put in bids of about £1bn (€1.49bn) to £1.2bn for Saga, the UK insurance and holidays group for the over-50s.

Merrill Lynch is understood to be working with BC Partners, the European buy-out firm. Credit Suisse First Boston is believed to be advising Kohlberg Kravis Roberts, the US private equity firm. All parties declined to comment.