BANK of Ireland refused to comment early this morning on reports that it is the front runner to buy Bristol & West Building Society. Mr Michael Hillin, the head of investor relations at Bank of Ireland, said that the bank had a policy of not commenting on market rumours.
Bank of Ireland is one of several banks tipped to announce a takeover bid for the building society on Monday. Bristol & West Building Society yesterday closed all its share accounts to new investors because of the level of takeover and flotation speculation.
Other banks in the frame include AIB and National Australia Bank. The financial services to tobacco group BAT and insurance giant Prudential have also been named as potential predators within the last week. Industry sources value the society, the ninth largest in Britain, at around £600 million sterling.
One industry source said: "We strongly believe it will be Bank of Ireland out of all the names mentioned because Bristol & West would give it a market in terms of retail money.
"They are struggling in terms of raising retail money and a building society, would give them superb access to that market.
Earlier this week it was reported that Bank of Ireland had taken a very long hard look at Bristol & West, but had decided against a takeover bid following a due dilligence examination.
A takeover would spark payouts of between £750 and £1,000 on average to more than one million qualifying members.
