Would you reinvest in a bank that had credit problems, and had borrowed up to three billion pounds from the last-resort fund, Bank of England, because there is a possibility there might be a management change?

Northern Rock has swiftly changed its stance, and reneged on its promise of a 59 million pound dividend payout to shareholders. The bank had said earlier it would pay the dividend of 14.2 p per share next month, on 26 October. The news that these payments would not be made came close on the heels of an announcement from the bank that it has received more than one takeover bid.

While Northern Rock’s stock has fallen 74% since it said it was credit problems, 12 days ago, its shares showed a 14 % jump this morning after the bank announced last night that it had been approached with proposals from potential bidders.

In an official statement to the London Stock Exchange, the bank said, “The board believes that it would not be appropriate to make any interim dividend payment until it can make a full announcement regarding the outcome of discussions with other parties and the development of the business model.”

The bank had been facing political pressure to scrap its proposed dividend payout which was announced in late July along with its interim results. MPs on the Treasury Select Committee had been vocal in condemning the bank’s declaration that it would pay out cash to shareholders while taxpayers’ money was being used to extend the bank’s credit in the emergency loan.

The bank’s official website has been maintaining that it is open for business as usual, and that really, things are fine. It’s also been urging investors who pulled out during the crisis to re-invest without penalty, even going so far as to say they’ll be provided with lost interest. This move has drawn criticism from investors who hadn’t withdrawn funds during the crisis; many of these believe they should get a loyalty bonus.

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