SPECULATION that Bank of Ireland will take over British building society Bristol & West swept the dealing rooms yesterday but had little effect on its share price which closed up just 2p at 426p.

In contrast, AIB, which wash well bid throughout the day, drifted lower, ending down 2p at 321p, while Anglo Irish Bank was unchanged at 56.5p. Among the other financials, Irish Life and Irish Permanent were unchanged at 250p and 372p respectively.

Dealers had mixed feelings about the move by Bank of Ireland. Some questioned why an Irish bank would be bidding for a small building society, while others said it would be a very good fit.

A British based takeover would probably be seen as very hostile by society members who would feel that it would entail huge job losses and office closures, analysts - An Irish based takeover would not have the same effect, they said.

Afternoon trade was thin, although the ISEQ Index closed just a few points short of its all time high earlier this month.

Smurfit continued its recovery, rising 3p to 163p. Dealers said the share price seems to have turned the corner. Waterford Wedgwood also performed well, finishing up 2.5p at 70p.

CRH which has enjoyed a good run recently rose 4p, finishing at 561p.

Industrial holding company IWP rose five pence to 463p.

Abbey's share price also rose 5p to 170p and Heiton was up 2p at 86p.

Fyffes slipped back slightly, finishing down 2p at 112p.