Irish Life & Permanent and Cardinal Capital Group shortlisted to buy EBS

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davidcochrane
The Minister for Finance has this morning confirmed that the sales process for EBS has reached the final stage. Two bids for the building society are now being considered, one from Irish Life & Permanent and the other is from an international consortium led by Cardinal Capital Group.

The final stage of the bidding process saw bids assessed under various criteria including value to the taxpayer, structure and deliverability.

The two final bidders will be asked to make final bids over the coming weeks, according to the Department of Finance this morning.
 


DCon

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Is this guy still involved with Cardinal?

One of the potential investors, Wilbur Ross, gave an interview to CNBC television today. Mr Ross is a veteran US investor and an industry leader in bankruptcies in the banking sector.

He told CNBC television today that he had joined a consortium which was bidding for EBS. The other members of the consortium are Dublin-based Cardinal Capital and the international Carlyle Group.

They have pledged to put €550m into EBS in return for a 70% stake. This would leave the Government with the remaining 30%.

In today's interview Mr Ross said that lenders would have to cut the principal amount people owed on their mortgages. He added that people in Ireland, unlike some states in the US, remained on the hook for their borrowings even if a bank had repossessed a home.
US veteran investor joins in bid for EBS - RT News
 

HarshBuzz

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I can't take anyone with the name Wilbur seriously

reminds me of Mister Ed, the talking horse

best result for Ireland would probably be ILP\EBS tie-up
 

eoghanacht

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The Carlyle group now there's a conspiracy nuts wet dream
 

apolo

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EBS mortgage holders a turkey ripe for plucking.

What will happen when EBS is sold?

All branches will be closed down, staff will be made redundant, may become an online bank, mortgages will be increased to any level the owners think fit.

The result?

Mortgage holders will be screwed, then the EBS will become very profitable and sold on again.

Another Fianna Fail disaster.
 

Libero

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In fairness to the Cardinal Capital Group, it may be fronted by a man called Wilbur, but it's not avoiding insolvency by understating its level of present and future mortgage losses.

As the Phoenix has pointed out, PTSB can hardly claim the same thing, although they've much better connections around Dublin town.
 

MsAnneThrope

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*bump*

The Sunday Tribune had an update on this yesterday:

The state will have to write off the €625m in cash it has provided to EBS if a private equity bid for the building society is accepted this spring, according to a source familiar with the negotiations.

The plan, put forward by a consortium led by Dublin firm Cardinal Capital, proposes a fresh €600m capital injection to take the mortgage lender off the state's hands. But the bid does not reimburse the government for its special investment shares or leave the state with a stake in the institution. [...]

A rival bid by Irish Life & Permanent would see the government adding the necessary €438m EBS needs to comply with the Central Bank's capital standards, but retaining a substantial stake in a new institution incorporating IL&P's banking arm, Permanent TSB. [...]

The NTMA has not ruled out the possibility that the ultimate solution for EBS could involve both IL&P and the Cardinal consortium. Cardinal has reportedly drawn up plans to acquire PTSB at a later date if it succeeds in its bid for EBS
Sunday Tribune, 23rd January 2011: Private equity sale of EBS would lose state €625m

Would the extra €438m government injection into EBS be a better deal for the State in the long run, assuming the IL&P bid is accepted?
 


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