AIB is increasing its interests in Poland with the acquisition of a stake in a funds management operation.

AIB has acquired 51 per cent of Chase Fund Management Polska from Chase Manhattan International Finance. AIB declined to disclose the acquisition price. While the acquisition is a small one, the move is aimed at putting AIB into a strong position to bid for investment banking and corporate finance business as the privatisation process gathers speed.

Chase Manhattan International manages the NFI Magna Polonia Fund, one of the 15 publicly quoted national investment funds consisting of stakes in a number of small companies. As these companies increase in size and strength many are expected to be floated on the stock market. With a stake in the company managing the fund, AIB should be in a strong position to take a good share of the advisory and the investment banking business involved.

AIB is splitting its Chase Fund Management Polska stake with its 60 per cent Polish subsidiary WBK Bank. Following the transaction AIB will hold 26 per cent of the funds management firm while WBK will hold 54 per cent. Consulting firm Nicom will hold the remaining 20 per cent.

Magna Polonia said its management contract with Chase Fund Management will remain in place. The deal has to be approved by the anti-monopoly office in Poland.