A small group of punters made a €20,000 killing by correctly betting on a sharp rise in First Active's share price two weeks before the Royal Bank of Scotland takeover was announced.

Online booking company ShareSpread said the interest in the stock in the couple of weeks before Monday's announcement was "unprecedented".

A number of people had previously placed bets on First Active shares at the beginning of this year just before it announced a windfall payment of €180 million to its shareholders, according to the company.

ShareSpread marketing manager Mr Tony Judge said 25-30 new accounts were opened to bet on First Active shares.

Some were putting bets of €10 to €50 on every cent the share moved.

On Monday, First Active shares rose by 32 per cent from €4.65 to €6.13, which would have netted €7,400 on a €50 bet.

These lucky punters won't have to pay capital gains tax, stamp duty or commissions on the back of its dealings in First Active shares. They have also not broken the law, as they simply placed a bet.

Online share betting is an unregulated activity but may come under the ambit of the Irish Financial Services Regulatory Authority following the adoption of an EU directive under consideration. This could mean that any future dealings may be examined.

ShareSpread had taken a view that First Active's share would rise to €5.10 by December 31st, 2003. These punters believed it would move higher and began to take positions shortly after First Active's legislative protection against a takeover elapsed.

On the previous occasion, the individuals who placed bets on First Active were expecting the share price to fall. Those bets were made days before the former building society's capital repayment announcement was made, which was worth €1.12 per share. Its share price subsequently fell back by that amount after the announcement.

ShareSpread had been running a book on which institution was likely to buy First Active.