Royal Bank To Bid For AIB ?

Even while still digesting the fruits of their recent merger with the NatWest, executives at The Royal Bank Of Scotland are now believed to be ready to make an opportunist bid for some or all of Allied Irish Banks.

Rumours were rife about a possible deal, which could create one of Europe's biggest banks, as soon as AIB released details of the Allfirst rogue trader scandal in early February.

Although it is believed that RBS will await the outcome of the Ludwig investigation into the trading loss of £483m incurred by FX dealer John Rusnak, word on the street is that a serious bid is being considered.

RBS will announce 2001 full year profits Thurday.