Split sale possible for Ulster

The initial jockeying is already starting in the expectation that Ulster Bank is about to be sold.

With more than 110 branches in the South and 91 in the North, the sale of Ulster would be significant in terms of the development of the market here. So far it has been assumed that Natwest will sell off Ulster in one "lot". However a separate sale of the operations North and South cannot be ruled out.

Natwest management's goal - or the goal of Bank of Scotland if their bid succeeds - will be to get the best price possible - and to get as much cash as possible, as opposed to shares. This may best be achieved through selling the operations off separately.

Irish Life & Permanent, for example, would probably pay a fancy price to get hold of Ulster's operations in the Republic. While they would also be interested in the operations in the North, the lack of any particular cost saving synergies would make them offer to pay less.

Bank of Ireland, on the other hand, would have a particular interest in the Northern operation but it could face a competition investigation in the Republic.

National Australia Bank, meanwhile, if it is interested at all would have a greater interest in the Republic operations of Ulster - as owners of Northern Bank it would surely be blocked by the British government on competition grounds from buying the branches in the North.

It is early days yet, of course, but do not rule out a split sale.