Bank of Ireland still wants to complete a merger or takeover deal with a major British financial institution despite the recent collapse of merger talks with the Alliance & Leicester, it has told some of its bigger investors.

During a series of presentations to institutional investors this week, the bank's senior management has stressed its interest in becoming a bigger player in the British market. It said it was already examining "strategic options" there. One source said the bank was keen to show the planned merger with A & L was not a "knee-jerk reaction."

Bank of Ireland shares weakened in Dublin yesterday having improved earlier this week after management began its roadshow. The shares closed at €17.95 (£14.14), down 15 cents from €18.10 on Monday but still ahead of €17.50 levels before the merger was announced.

Analysts suggest the bank could consider a deal with several of Britain's former building societies, including the Woolwich and Bradford & Bingley. And given the advanced negotiations held with A & L, the bank could move quickly to tie up any new deal. Analysts cite the extent to which issues such as the regulation of an Anglo-Irish institution have already been teased out while the markets have shown preference in their preferred composition of the senior management structure.

The bank's chief executive, Mr Maurice Keane, is leading the meetings with institutional investors. He has reiterated that the primary focus is on managing the day-to-day business of the bank.

The full details of the planned merger with A & L are not being disclosed to investors. One fund manager said the fact that the bank had attempted such a deal showed the court of directors and management were committed to looking at ways of enhancing shareholder value.

Based on details in the public domain a source commented on the bank's willingness to shuffle its management team in the interests of shareholders. "If the management had blocked it on the basis that it would mean some of them would be losing their patch that would have been very bad for shareholders." Another fund manager suggested the institutions would now watch to see whether the court of directors and the senior management team would learn from the debacle. "Maybe the court of directors underestimated the high esteem in which the management in Bank of Ireland are held within the investment community."

Most fund managers are anxious to stress that while the bank is sitting on huge cash resources they would not like management to feel it was under pressure to do a deal. "Over-capitalisation may have an impact on returns but it will have nothing like the impact of doing the wrong deal. Maybe the collapse of the A & L deal was a merciful release."