Irish Life & Permanent has said that it will not be a bidder for the State-owned ICC Bank, and that it intends to concentrate on its core business of retail financial services - pensions, investments, mortgages and personal lending.

The confirmation that Irish Life & Permanent will not be a bidder for ICC comes shortly after the merger between Irish Life and Irish Permanent. Prior to the merger, Irish Permanent chairman Mr John Bourke said that acquiring ICC would be a major priority for the merged group in the weeks following the merger.

But a spokesman for Irish Life & Permanent said that the group has not sought the information memorandum on ICC and has decided not to bid. "We looked at making a bid very carefully but decided against because we see strong growth in our existing retail business - pension, life assurance and mortgages."

The withdrawal of Irish Life & Permanent means that there are likely to be three strong bidders for ICC in the shape of Bank of Ireland, Ulster Bank and IIB, while other potential bidders include Anglo Irish Bank and the Bank of Scotland-owned Equity Bank. Industry sources believe that, given its presence in the corporate banking market, ICC will fetch around £300 million.

Bidders have to indicate their interest in ICC by obtaining the information memorandum by August 9th. After that, bidders have until August 23rd to submit a formal tender.