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(Repeats story published late Monday; no changes to text)
* Duffy named CEO of National Australia Bank's Clydesdale
* Clydesdale preparing for stock market listing or sale
* Clydesdale has been hit by conduct charges, bad loans
By Padraic Halpin and Matt Scuffham
DUBLIN, Jan 19 (Reuters) - Allied Irish Banks (AIB)Chief Executive David Duffy is leaving to run National AustraliaBank's troubled British business which he will try torevive ahead of a planned sale or stock market listing.
Duffy will take over as CEO at National Australia Bank'sClydesdale Bank within the next few months, NAB said, as itlooks at ways to leave Britain after years of poor performanceand high charges to compensate customers for mis-selling.
The announcement comes just a week after the Irishgovernment appointed advisers to kick off the sale of its AIBshares. Duffy joined AIB at the end of 2011 and has guided the99-percent state-owned bank back to profit.
NAB, Australia's fourth-biggest lender by market value, saidin October it had made an exit from Britain an "absolutepriority" and was looking at options including a sale or initialpublic offering.
Duffy will need to get the business into strong enough shape to attract investors in an already crowded market.
Virgin Money, TSB and OneSavings Bank listed last year and the British government is alsoselling its shares in Lloyds Banking Group.
Clydesdale's appeal to investors has been hit by he cost ofwriting off property loans which turned sour and charges formis-selling loan insurance and complex hedging products.
"It does need a tidying up and presenting in a better form.It's not as though investors don't have choice in terms ofpicking up challenger banks," said Shore Capital analyst GaryGreenwood.
SALARY GAP
NAB paid 420 million pounds ($635 million) for ClydesdaleBank in 1987 and 900 million pounds for Yorkshire Bank threeyears later.
The business has around 300 branches and industry sourcessay it provides 2-3 percent of small business lending in Britainand about three percent of personal current accounts.
Duffy will remain in position at AIB to support the board inidentifying his successor with his final departure date to beagreed, the bank said.
Ireland's finance minister, Michael Noonan, who last weekappointed Goldman Sachs to advise on the sale of AIB,said Duffy would leave the bank in about six months and that hewould consult AIB Chairman Richard Pym in the coming days to putin place a process to recruit a new CEO.
Noonan said if Duffy had stayed for the next phase of thebank's recovery, it would have meant another 4-5 years and "thatlevel of commitment was too long" for him.
Bank executives in Ireland are subject to agovernment-imposed salary cap of 500,000 euros ($678,600). Duffytook a pay cut as part of bank-wide wage reductions, reducinghis salary to 425,000 euros last year.
Duffy's predecessor as Clydesdale chief executive DavidThorburn, who quit earlier this month, was paid an annual salaryof 955,000 pounds. The bank declined to comment on how muchDuffy would be paid.
The appointment of an adviser last week marked a steppingstone in Ireland's bid to begin to recover the 21 billion eurosspent on rescuing the country's second-largest bank by assets.No transaction is expected until the second half of 2015
Noonan, who believes the state can recover the full amountover time, said he did not expect the resignation to damagethose attempts, although Merrion Capital analyst CiaranCallaghan said the timing was likely to be an unwelcomedevelopment in the sales plan.
Ireland increased its valuation of its AIB investment to13.3 billion euros at the end of last year, meaning it will needto sell the bank at a significantly higher value to break even. ($1 = 0.6602 pounds) (Additional reporting by Steve Slater and Conor Humphries;editing by Jason Neely and Keith Weir)
