Bank of Ireland has emerged as the front runner to buy the State-owned ICCBank which is expected to fetch £330 million (€452.24). Yesterday was the closing date for those seeking to apply for a copy of the information memorandum on the company.

Advisers working on the sale refused to disclose the number of parties which sought the document. As reported in Saturday's Irish Times, it provides quite detailed information on the bank and its market share in various sectors. Those interested in buying ICCBank are understood to include Equity Bank, Ulster Bank, Anglo-Irish Bank and Irish Intercontinental Bank. Indicative bids must be submitted by August 23rd.

Market sources said last night that Bank of Ireland had to be the front-runner and played down the possibility of groups such as Equity Bank and Anglo-Irish Bank being in the final bidding.

A Bank of Ireland spokesman said the bank had made no secret of its interest in ICC. "We are looking at it very closely," he added.

"If they (B of I) decide to bid for it, they will be very difficult to compete against," said one market source.

B of I is also said to be anxious to ensure that it makes a strong effort to win the bid, following its failed attempt to negotiate a merger with the British financial institution Alliance & Leicester. B of I was criticised over its handling of the merger and the fact that it seemed willing to cede the top job to the Alliance chief executive, Mr Peter White.

Sources said that ICC would be very attractive to B of I because of its share of the small and medium enterprises (SME) market. It is a sector in which B of I is not perceived to have as strong a presence as Allied Irish Banks for example, according to analysts.

ICC also has a strongly performing venture capital arm, ICC Venture Capital which would be of interest to B of I.

"B of I feels that its presence in the SME market isn't strong enough," said one source, "but ICC doesn't have a premier banking product. In some ways, B of I would be acquiring a number of its own customers."

The source added that the rational for B of I to buy ICC was "not overwhelming".

According to its information memorandum, ICC has a 9 per cent share of the small and medium lending market in which it competes. It lists its main competitors as AIB, Bank of Ireland, Ulster Bank and Anglo-Irish Bank.

Several sources pointed to B of I's acquisition of New Ireland Assurance, beating off strong competition from Irish Life and Irish Permanent two years ago, with a £273.6 million bid, considerably higher than that of its rivals. The move made Bank of Ireland the unchallenged number two in the life assurance and pensions market. The sources said B of I's determination - as in the New Ireland case - could not be underestimated, if it wanted to buy ICC. Another source said Irish Intercontinental Bank (IIB) is also said to be interested in bidding for ICC.