3i, the pan-European and UK-listed private equity firm, is to close its Dublin office even though it is in the thick of discussions over backing an Irish buy-out.

Clive Austin, head of 3i in Ireland, said: "We are in the middle of negotiations on the deal right now. 3i will continue to be interested in Ireland even though it is closing down its office. I will continue to cover it, but based in the UK."