YIELDS at a treasury bill auction yesterday fell from an auction two weeks ago after the Government announced on Wednesday that it would gradually wind down Anglo Irish Bank.

THREE of the bigger international names linked with a potential bid for AIB’s €2 billion stake in its Polish bank have withdrawn their interest, reports suggest.

AIB could place its 22.5% stake in US bank M&T with institutional investors if it fails to secure a purchaser.

THE state-backed Polish bank PKO BP will place an offer to buy AIB’s 70% stake in Bank Zachodni WBK (BZ WBK) next week, ahead of the end of June deadline.

POLAND is set to back a bid by the state-controlled lender PKO to buy the Polish operations of AIB, a government minister said.

AIB is expected to sell its €2.8 billion 70.47% stake in Warsaw-based Bank Zachodni WBK in the fourth quarter or the first quarter of next year, chief executive of the Polish bank, Mateusz Morawiecki, said at a news conference in Warsaw.

AIB is under pressure to sell off its prized US, British and Polish assets as the Government anticipates it could become a majority stakeholder in the bank.

AIB remains confident of raising necessary post-NAMA capital without the need of further Government assistance, but hasn’t ruled out the latter option.

AIB’s outgoing chief executive has poured cold water on the bank simply selling off overseas divisions in order to raise further funds for the group.

AIB has declined to comment on continuing speculation that it may be on the verge of selling its 70% controlling stake in Polish bank, Bank Zachodni WBK.

AIB’s chief executive is unlikely to look for a bonus or a pay rise for the rest of his career, after he admitted the bank has made mistakes.

BANK ZACHODNI WBK, the Polish lender controlled by AIB, said the change of brand it is considering may cost between 200m and 400m zloty (€56m-€112m).

AIB made pre-tax profits of €851 million for the first six months of 2005 against €706m in the same period last year.

AIB moved quickly yesterday to rubbish speculation that it is on the verge of disposing of its 70% stake in Polish Bank Zachodni WBK.

AIB’S Polish subsidiary doubled profits to over €27 million in the first three months of the year, the bank said yesterday.

AIB's Polish subsidiary Bank Zachodni WBK saw pre-tax profits surge in the first quarter, boosted by a large dividend from its stake in insurer Commercial Union's Polish arm.

IRELAND’S biggest company Allied Irish Banks yesterday refuted market speculation it was in talks to widen its holdings in the Polish banking sector. It did not rule out such a move in the future.

PROFITS at AIB’s Irish and British banking arms drove earnings higher last year, according to the bank’s annual results.

ANGLO IRISH BANK and AIB Bank share prices are expected to increase substantially according to stockbroking houses.

AIB’s Polish Bank Zachodni WBK said yesterday its net profit should double in 2002 thanks to tight cost control and relatively low bad debt charges, after its third-quarter earnings met market expectations.