TSB and ACC account-holders may not be getting free shares when the merged bank floats next year but "long-standing customers" of both banks are expected to be invited to subscribe for shares at the offer price. The Minister for Finance, Mr McCreevy, has approved such an allocation, provided it doesn't contravene domestic or EU legal requirements. Details of who will qualify are to be determined by its corporate advisers, but being able to subscribe at the offer price should be an advantage for customers as share prices normally rise immediately after floatation. Speaking in the Dail yesterday, Mr McCreevy said he was prepared to reserve a specific number of shares for this purpose.

The Minister said he would shortly be advertising for advisers on the flotation. "The question of an allotment of shares at the offer price to longstanding customers is one of the issues that will be examined in detail by those advisers." Meanwhile, Mr John O'Reilly, a research analyst with Bank of Ireland-owned Davy Stockbrokers, has tendered his resignation from the board of ACCBank, citing a potential conflict of interest. Mr O'Reilly, who has served on the board for three years, told ACCBank, the trustees of the TSB and the Minister for Finance yesterday that he would step down at the end of March, while the Stock Excahge was also informed.

The potential conflict of interest is understood to relate to Davy's interest in tendering to advise the Government or the banks on the float.