All options for the future of ICC Bank are on the table except the continuation of the status quo, according to chairman Mr Phil Flynn.

With the Government committed to sell up to 100 per cent of the bank, ICC is preparing criteria for choosing a buyer. The Minister for Finance Mr McCreevy wants to finalise a deal this year and ICC, keen to accelerate growth, will not delay the process.

Significant interest in the bank has been expressed by both domestic and foreign buyers It. could fetch £150 million to £200 million if the entire state shareholding is sold, although it is not yet clear how much of the stake is likely to be sold. The Government owns 99.9 per cent of the bank, with the remaining shares held by 41 private investors.

ICC and the ASTMS union representing staff are preparing papers for Mr McCreevy on their favoured criteria and process for the deal. They are expected to be completed within weeks.

ICC, which has a target of doubling its total assets between 1995 and the year 2000, wants a buyer prepared to expand the business aggressively in its niche market - the provision of finance and services for small and medium sized businesses. It also wants a partner which will support the bank with necessary capital and funding. Whether a buyer is Irish or foreign-owned is not an issue, as long as it can deliver on the growth criteria. ICC also wants a purchaser which sees venture capital as important part of business and sees a continuous role for its active and progressive treasury operation. It also wants an institution which can offer security and opportunities to its 300 staff. What ICC does not want is a buyer seeking to achieve value through contracting the operation. Price will be important but it will not be the only factor in any deal.

Overall it wants a buyer that will use the bank as a vehicle for achieving more prominence in the SME sector and will expand the bank by directing other products and services through ICC into that market. ICC board and management has reacted positively to the change of ownership plan. They see a change as facilitating growth and future development. The overriding issue for management is to find the new owner that will best accelerate the development of the business. While the bank wants to move quickly, it feels that getting the right answer is more important than getting a quick answer.

The sale of ICC, as well as ACC, is likely to involve a tender process. Initially expressions of interest will be sought and then potential buyers will be asked to submit plans for development of the business. The convergence of this business plan with the ICC and union criteria will be crucial to the short-listing the final potential buyers.

ICC will appoint advisers as soon as its criteria are established, but the bank will remain closely involved with the process. According to Mr Flynn: "We have a view of where we are, what we have to contribute we feel responsible to our niche market and we want to go on serving that clientele. If you look at what is happening in banking not just in Ireland but globally there is not an option to remain alone."