The Minister for Finance, Mr McCreevy, has expressed disappointment that Bank of Ireland is now the only bidder for ICC Bank but has rejected suggestions that the sale should be postponed.

Speaking in the Senate last night, Mr McCreevy said that up to 10 banks had expressed an initial interest in buying the State-owned bank but only three firm indications of interest were received by the August 23rd closing date. One of the banks withdrew from the sale process before undertaking a preliminary due diligence.

The two remaining bidders, Bank of Ireland and the Belgian-owned KBC Bank, completed due diligence and met with ICC management and union officials. But KBC subsequently withdrew from the process, citing commercial reasons.

Responding to a call by independent Senator Shane Ross to delay the sale of the State-owned bank, Mr McCreevy said that while he was disappointed that only Bank of Ireland proceeded to the final stage of the bidding process, its bid should be given due consideration. "When this exercise has been completed, and I have further consultations with the ICC board, I intend to bring proposals to the Government for its consideration."

Mr McCreevy announced yesterday that he had decided to allow Bank of Ireland to carry out due diligence on ICC Bank as "the preferred bidder" for the State-owned operation. This dose not ensure, however, that ICC will be sold to Bank of Ireland.

It clears the way for the detailed due diligence examination of ICC by Bank of Ireland. This will be followed by final negotiations between the bidder and the minister's advisers to the sale, ABN AMRO, to reach agreement on an appropriate price for ICC.