ICC sale to net staff £100,000

Employees in ICC Bank are likely to receive shares worth in excess of £100,000 (€127,000) each if the sale of the State-owned bank goes ahead.

An official with MSF, Mr Brian Gallagher, said an employee share option scheme had been passed by the members and approved by the Minister for Finance, Mr McCreevy. Details of the scheme are currently awaiting approval by the Revenue Commissioners. "Essentially it is in place," he said.

In the event of the bank being purchased by another, publicly quoted institution, the employees would swop their ICC Bank shares for shares in the new owner, thereby creating liquidity. The 320 employees get a 14.9 per cent stake in the bank under the scheme.

Mr Gallagher said he would not be commenting on speculation concerning the future of the bank.

The bank's chief executive, Mr Michael Quinn, refused to comment yesterday on reports that Bank of Scotland was in advanced talks with ICC Bank and that a purchase price of sterling £170 million (£223 million) was being discussed.

"A number of parties have expressed interest and it may or may not lead to something," he said. A spokeswoman for Bank of Scotland said it would not be commenting on speculation.

The ICC Bank board issued a statement yesterday confirming that a number of parties had expressed an interest in acquiring ICC Bank. "This interest may or may not lead to an offer for the company. No proposal has been received to date that is capable of being put to ICC's shareholders. Should any of the interest received develop into an acceptable proposal, this will be put to the shareholders."

ICC Bank was first put up for sale by the government last year. However the sale process collapsed after Bank of Ireland refused to pay more than £200 million for the institution. Government advisers had indicated it was worth more than £300 million.

An increased Bank of Scotland presence here would be likely to increase competition in the sector.