Egg has lost money in France

French bank Accord is to buy the credit cards and loans component of the venture by the end of this year.

UK-based Egg said it would make a �45m loss on the disposal, which is part of a strategic retreat from France.

The sale, which has the support of unions, will involve the transfer of 66,000 customer accounts and 100 staff from Egg to Accord.

The sale is still, however, subject to regulatory approval.

Parallel talks

A spokesman for Accord said Egg's customers were exactly what they were after.

These clients are internet users, young and urban Accord

"These clients are internet users, young and urban," it said.

"They represent an interesting base for the development of the bank's internet activities."

Egg is also in separate talks to sell the other part of its French business - its savings and investment accounts - to ING Direct France.

Earlier this month Egg announced overall losses of �103m for the first nine months of a "challenging" year, dragged down by its French operations.

Operating profits at its core UK arm fell to �53m from �57m amid increased competition and rising interest rates.

Too expensive

In August, insurance giant Prudential axed plans to sell its 79% stake in Egg, with some analysts saying the French unit was the hurdle to finding a potential buyer.

It remains to be seen whether the Prudential will now return to the sale idea.

Egg launched in France in November 2002, but began closure steps in July after racking up heavy losses and seeing customer numbers fall short of hopes.

Plans to revive the business - known as La Carte Egg - involved more investment than Egg was prepared to take on.

Egg currently employs 450 people in France and about 2,000 in the UK.