THE Polish government has seemingly drawn a line under its failed attempt to persuade AIB to sell its stake in Bank Zachodni to a domestic player.

Dublin: PKO bank, which is Poland’s biggest lender, is understood to have made a revised cash bid for AIB’s controlling stake in its national counterpart, Bank Zachodni.

AIB is expected to receive final bids for its 70% stake in Polish financial institution Bank Zachodni by the end of today, with reports suggesting the Irish bank will settle on a preferred bidder sometime next week.

AIB is unlikely to be able to wrap up the sale of its Polish operations by the end of this month and could even be facing a huge challenge to conclude a deal before the end of the year.

THE ISEQ held up yesterday, down by less than 0.1%, despite yields between long-term Irish bonds and their German equivalents widening further, to their biggest gap for nearly 20 years.

SPANISH bank Banco Santander – Europe’s biggest – is the front runner to buy AIB’s stake in Polish bank Zachodni WBK, in a head-to-head bidding war Poland’s biggest bank PKO BP which could garner €2.5 billion for the troubled Irish bank.

THE sale process surrounding the EBS Building Society is unlikely to be completed until near the end of the year, despite yesterday’s latest deadline for bids from interested parties.

AIB could be close to raising part of its end-of-year capital requirement through the sale of its 22.5% stake in New York-based M&T Bank.

SPANISH banking giant Santander has emerged as the latest ‘favourite’ to land AIB’s 70% stake in Poland’s Bank Zachodni and could end up taking over most of the Irish banks’ international assets.

POLAND’s Bank Zachodni has said it has held four meetings with potential buyers of AIB’s controlling interest in the company, but declined to say if the sale process was close to conclusion.

A MINIMUM of seven international financial services companies have expressed an interest in acquiring AIB’s 70% stake in Polish player, Bank Zachodni, according to reports emanating from Poland.

The Polish government has approved a bid for AIB's stake in Bank Zachodni by a semi-state bank in Poland.

Reports in France suggest both BNP Paribas and Societe Generale are keen to buy AIB's Polish subsidiary Bank Zachodni.

AIB has refused to comment on its progress in meeting capital-raising requirements, despite mounting speculation regarding its Polish operations and concerns over the possibility of state ownership.

AIB has pencilled in a rights issue for September, to help it meet its €7.4 billion post-NAMA capital requirement by the end of the year.

FIRST quarter profits at M&T Bank – the New York-based institution in which AIB holds a 23% stake – grew by $87 million (€64.5m), on an annualised basis, to $151m, helped by a lowering in lending costs.

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.

M&T BANK, the US bank in which AIB holds a near 23% stake, has reported a 40% year-on-year increase in third quarter net profits but has still seen a like-for-like fall of 46% in profit for the year to date.

AIB plans to sell off its €1.13 billion 22.64% holding in M&T Bank in the US to raise capital, it emerged yesterday.

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.

THE Government says it has no intention of nationalising the country’s two largest banks, as AIB revealed plans to raise a further €1.5 billion.

ALLIED Irish Bank’s major holdings in a US and Polish bank are worth a staggering €1.3 billion more than the current €485 million value of AIB on the Irish Stock Exchange.

Bank Zachodni, the Polish unit of AIB aims to open “at least” 10 new branches this year, fewer than originally planned.

THE Irish market stayed in positive territory for the third successive day posting a gain of 31.30 points on the day to close at 5972.48.

The ISEQ moved up over 1% today, adding 70 points to 5506, with strong gains in heavyweights CRH and Elan.