The possible sale of the Automobile Association - for as much as £1 billion sterling (€1.54 billion) could result in modest windfalls for its members, including thousands in the Republic. British gas supply company Centrica said in a brief statement to the stock market yesterday that it was in talks with the group.

The AA later confirmed that its committee was in discussions with Centrica about the options for its future. "The committee always acts in the best interests of the AA and will keep members, customers and staff fully informed of developments. A further announcement will be made in due course."

In April, there was speculation that the sale of the mutually owned company was in prospect following the sale of the RAC to Lex Service for £437 million sterling. Centrica can supply domestic electricity as a result of deregulation and could use the AA's vast membership to enhance its position as a provider of household services. If successful, the move would result in moderate pay-outs of around £150 to its 4.3 million personal members.

Around 80,000 of the AA's 185,000 members in the Republic would qualify for the payout in the event of demutualisation as they are full members rather than associates. People who get AA cover that is a breakdown service, as part of a car purchase deal, or a small portion who have fleet membership, do not qualify.

Earlier this year, the AA turned its core breakdown assistance business into a limited company, which was widely seen as a step towards selling off the business.

Mr Nigel Hawkins, utilities analyst at stockbrokers William de Broe, said a £1 billion price tag, while an accurate assessment of the AA's value, was a high price for Centrica to pay on its own.