Buy the shares in anticipation of a bid when Irish Permanent's five-year takeover-free period runs out in 1999 is the message from Merrill Lynch analysts in their first analysis of the Permo.

Purely on the basis of its premium rating compared to AIB, Bank of Ireland and the British clearers, then there is no compelling reason to buy Irish Permanent.

But in the longer term, Merrill believes the shares are worth "accumulating" - the usual broker euphemism for a "buy", especially with Abbey National lurking in the wings as a possible predator.

Merrill says, however, that the shares are attractive at 600p, so presumably at the current 660p the shares are less of a bargain.