Irish banks have shown a penchant for investing in eastern Europe. AIB's investment in WBK in Poland has been an outstanding success so far, while Irish Life has dipped its toe in eastern Europe with its joint purchase with Kredietbank of K&H Bank in Hungary. Bank of Ireland was, of course, an underbidder for K&H and is also thought to have an unsuccessful pitch for Bank of Budapest.

So expect the Irish banks to run the eye over three banks likely to be sold by the Czech government. These include 51 per cent of CSOB, as well as a 34 per cent stake in two other state banks, Komercni and Ceska Sportilena, which are expected to be sold off jointly.

The European Bank for Reconstruction and Development, which was jointly involved with AIB in buying out most of WBK, has signalled that it is prepared to become involved with an outside investor.