B of I in talks over Chase de Vere sale

Bank of Ireland is believed to be in talks to sell its UK financial advisory business Chase de Vere to German financial services firm AWD.

A Bank of Ireland spokeswoman declined to comment. But she noted that the bank's chief executive, Mr Brian Goggin, had signalled at the end of last year that it was in talks with a particular party, although the identity of the potential bidder was not made clear.

Market sources also believe that the bank is keen to conclude a sale ahead of its financial year-end on March 31st.

The bank acquired Chase de Vere for €160 million in 2000, at the height of the stock market boom, but it has proved a major disappointment.

Last year, Bank of Ireland appointed KPMG to handle the sale of the business, placing a price tag of between €15 million and €25 million on it.

In the year ending last March, it wrote off €93 million in goodwill associated with Chase de Vere and took a charge of €22 million for the impairment of certain assets in the advisory business.

A spokesman for AWD, which is listed on the German stock exchange, said it wanted to participate in consolidation within the industry but said it had not made a formal bid for Chase.

Earlier this week, Bank of Ireland described reports that it is to close the majority of its 98 Bristol & West branches in Britain as "total speculation".