UP to four companies are expected to be asked to make formal bids for Woodchester Bank before the end of this month. At this stage two major US companies - GE Capital and AT&T - are among the favourites to buy the company, which is expected to attract a price tag of up to £650 million.
GE Capital, long mentioned as a bidder for Woodchester, is the finance arm of the giant US General Electric Company and remains among the favourites to buy the Irish company. AT&T Capital, the finance division of the US telecommunications company, is also thought likely to be on the final shortlist.
Among the other groups to have expressed an interest are ABNAmro, the Dutch banking group. Woolwich, the building society which is to float next month on the London, may also have expressed an interest, although it is not now seen as a leading contender.
Ford Credit, the finance subsidiary of the car company and the second largest leasing firm in the US has also examined Woodchester, although it is not clear whether it will be among the final bidders.
The sale of Woodchester results follows the decision of the French bank, Credit Lyonnais, to sell its 54 per cent stake. Bidders will have to make an offer for the entire company and market sources believe the likely sale price will be up £650 million.
The sale is being conducted by Woodchester's advisers, Chase Manhattan and Goldman Sachs. It is expected that three or four of the bidders will be invited to submit formal offers last this month. Around half a dozen have already completed due diligence on Woodchester.
Woodchester has interests in Ireland Britain, Portugal, Denmark and Britain. Chairman and chief executive Mr Craig McKinney said at the recent annual general meeting that all markets were performing well at the moment.
The company is expected to make pretax profits of £50.5 million this year. It recently announced a £12.6 million acquisition in Portugal of two finance companies.
Britain is now Woodchester's leading profit centre, contributing 41 per cent of total profits of £44.3 million last year.
