Bank of Ireland and Anglo Irish Bank have been linked to the small UK merchant bank Wintrust as potential buyers. The bank, which is one of the smallest in the UK, is valued at £57 million (€81 million).

Neither bank would comment on the speculation yesterday. Wintrust chairman Mr Richard Szpiro refused to discuss which financial institutions may be considering acquiring the bank.

The bank has received a number of approaches and had appointed Lexicon Partners, the financial services mergers and acquisitions advisory boutique, to also consider other options.

The bank specialises in property finance, an area which is core to Bank of Ireland and Anglo's business activities in the UK. Mr Roy Keenan, chief executive of Bank of Ireland's UK division, has said it would consider buying some books of business, particularly on the specialist lending side.

The bank has established a considerable presence in the buy-to-let market.

Anglo Irish Bank has also developed a highly profitable property lending business in the UK and Wintrust may fit in with its operations.

The acquisition would be relatively small for either bank.