Irish broker Goodbody sold off at £20m by AIB

Dublin's best-known stockbroker, the 125-year-old firm of Goodbody, was today sold by Allied Irish Banks for 24 million (£20 million).

The buyer is Kerry-based privately owned financial services group Fexco, which has offices in London, Dublin and New York.

Australian bank Macquarie was among those also rumoured to have looked at the sell-off by Allied Irish Banks following AIB's multi-billion-euro bailout by the Irish government.

Fexco is believed to have negotiated a golden handshake deal with some two dozen of the broking firm's top executives, which could see them own up to a quarter of Goodbody's shares over time.

AIB has also written in a clause to the deal which means that if Goodbody is sold for cash within the next three years at a price higher than today's deal it will receive top-up payments.

The deal will not boost AIB's balance sheet with cash but will see some 260 people come off its payroll and reduce the amount of capital it has to set aside to cover stockbroking activities.