AIB will know in the next few weeks if its bid to expand its interests in Poland by acquisition has been successful. The Polish government is expected to choose an investor for regional bank BPH, the country's seventh largest with around 4 per cent market share, late this month.

Quoted on the stock market, Bank PrzemyslowoHandlowy's market value is about £550 million - putting a price of more than £225 million on the 41 per cent stake the government is selling.

But the stake will fetch much more than the market value because of the strong outlook for the Polish economy, expected EU membership and because the Polish market is underbanked. Buying a banking network with clients is much less risky and cheaper than developing retail banking from scratch.

Offering investors a recognised brand, a strong market position and a controlling stake, the BPH stake could cost AIB £280£340 million. There were seven serious bidders for BPH. AIB has been shortlisted to the final four which also includes the expansive General Electric, Citibank and Deutsche Bank.