Bank of America is inviting bids of up to £300m for Premium Credit (PC).
Close Premium Finance has already admitted an interest in buying the company, but faces a battle with venture capitalists and possibly Royal Bank of Scotland (RBS).
PC claims to dominate the UK premium finance industry with a 60% share of the market. The business was acquired by MBNA in 2004 for around £180m. Bank of America bought MBNA in 2005.
Close Premium Finance managing director Nigel Mottershead said: "Close Premium Finance would certainly be interested in looking at the potential acquisition of PC, as with any other premium finance prov-ider that came on the market."
One source said: "They (Bank of America) are doing the rounds at the moment, talking to venture capitalists first. The deal is worth between £275m and £300m. It is likely that RBS would also be interested. Close would definitely be interested, but it's whether it can get to the deal before anyone else."
The source added that the most likely option is for Premium Credit to be bought by a private equity house. A spokesman for Premium Credit said the company did not comment on "market speculation".
