STAFF AT Bank of Ireland Asset Management were told last Friday that the company has received an approach from a large global financial institution interested in buying the business.

This approach was made in advance of Bank of Ireland announcing last Friday that it has agreed to sell Biam as part of a restructuring plan agreed with the European Commission in return for State aid and the bank’s participation in the National Asset Management Agency.

Chris Johns, Biam’s interim chief executive, confirmed that a deal was in the pipeline.

“What I was able to say last Friday to my people, to my clients, and to . . . the investment consultants, [was that] the EU announcement is a distraction but it’s not the big deal you might think it is because we are in talks with very credible third-party global financial institution who have a very strong expression of interest on the table. We are hopeful that within a matter of weeks we will be able to say more.”

Mr Johns declined to reveal the identity of the suitor but added: “You will recognise it, undoubtedly. But it does not have any retail presence in Ireland.”

Mr Johns said a sale of Biam by the bank was the right thing for the asset manager, regardless of the agreement with the European Commission.

“It is generally recognised now that the right thing for Biam, independently of the EU, is a different ownership structure,” he said. “That’s an industry thing. It’s not anything specific to Bank of Ireland or Ireland.

“Where once this was a suitable asset for BoI to own, it’s recognised now that it would be better for this business and its customers if there was a different ownership structure, which is why we have been willing to engage with other parties.”

After years of underperformance, Mr Johns said Biam’s numbers have turned around in the past three years. “The reason why they are interesting in buying us is principally because they have noticed what we have done . . . they have seen the track record turnaround and they are a global financial institution with a gap in their product range with respect to global equities in particular.”

Biam has €25 billion in assets under management and employs 136 staff. Its sale price is expected to be less than €100 million, according to industry sources.

Separately, Bank of Ireland confirmed yesterday that it has begun discussions with a “number of potential institutional investors with a view to assessing interest” in its plans to raise €3.2 billion in new capital.

“Any such transaction may be effected through a combination of a rights issue, a firm placing to institutional investors, a conversion of part of the State’s 2009 preference stock into ordinary equity on market terms and selective liability management,” the bank added.

The State will continue to be a “minority shareholder”, the bank said. The details of the capital-raising are expected to be unveiled next Monday.