Likely bidder for MMI emerges

The firm believed to be in negotiation to buy MMI Stockbrokers is a London company associated with the Dutch financial group Mees Pierson. Sources say that a deal under which the company KNH Options will purchase MMI is likely to be announced by the middle of next week after lengthy negotiations between the two sides.

Mees Pierson is a major Dutch financial institution with subsidiaries operating across Europe, including an operation in the International Financial Services Centre in Dublin. MMI will make no comment on the negotiations.

Mees Pierson's stockbroking arm in London referred all queries to their legal representative, who would make no comment.

Earlier this week, the financially-troubled stockbroking firm MMI announced that it has reached an agreement in principle to secure the future of the company. The agreement is subject to the regulatory approval of the Central Bank, which has extended the deadline for the completion of the deal on a number of occasions.

The Central Bank said it had reason to believe that agreement on the acquisition of the entire share capital of MMI by a consortium of investors was imminent.

The cash-flow difficulties at MMI's stockbrokers arm first came to light in September, when the Central Bank ordered it to cease trading, except where the Bank gave its express permission. Much of its difficulties related to trading in shares of Dana Petroleum, where it had large outstanding debts from a number of clients.

Mr Tim Murphy was recently appointed managing director of the stockbroking firm and he has been leading the negotiations on the MMI side. He is thought likely to remain as managing director.