The Central Bank was last night considering the final terms for the takeover of the financially-troubled stockbroker MMI by the British financial group KNH Options.

Assuming that the Central Bank approves the takeover, an announcement may come as early as today.

It is understood that KNH will simply be taking over MMI's assets and liabilities and that no money will be paid to MMI founders - Mr Oisin Fanning, Mr Paul Boucher and Mr John Curran.

A spokesman for MMI refused to comment on the protracted negotiations between MMI, KNH and another private investor, but it is understood that KNH and the private investor will only be taking over MMI Stockbrokers and not MMI's asset management subsidiary.

KNH is an associate of the Dutch bank Mees Pierson which has a 20 per cent stake in the London broking company.

Two weeks ago, MMI got a further period of grace from the Central Bank to complete the negotiations with the unnamed consortium of investors. At the time, the Central Bank said it had reason to believe that agreement on the takeover of MMI was imminent. The negotiations, however, were lengthy and involved a number of different formulas. They almost collapsed late last week after Mees Pierson declined to provide finance for the takeover.

That refusal put the takeover in serious jeopardy until KNH and the other private investor found an alternative source of finance.

It is understood that KNH, which operates as a market-maker in London, was owed substantial amounts of money by MMI and that this debt was the prime reason for effectively bailing MMI out of its financial difficulties which arose out of the controversial rolling-over of client accounts.

MMI's cash-flow difficulties first came to light in September after the broking firm was ordered by the Central Bank to cease trading without the Bank's express permission. The cash-flow difficulties arose after around 100 of its clients refused to pay debts of more than £1 million incurred under the roll-over arrangement, where they were allowed to defer payment for shares that had been bought, mainly in the exploration company Dana Resources.

When some London market-makers withdrew their support for the roll-over arrangement, MMI was left holding Dana shares worth only a fraction of what was owed to the company by its clients. There are no details yet of how much of these debts have been recovered, although MMI has taken legal action in pursuit of them.