The Government plans to name Irish Life and Permanent and an investor group led by Cardinal Asset Management as the two preferred bidders for EBS Building Society, two people familiar with the talks said.
An announcement may be made as soon as today, said the people, who declined to be identified before an announcement. Cardinal, the Dublin-based investment firm led by financiers Nigel McDermott and Nick Corcoran, is bidding with US leveraged buyout firms Carlyle Group and WL Ross and Co.
EBS needs to raise about a total of €785 million to meet capital requirements set by the country's financial regulator. The Government, which has already injected €350 million into EBS, has pledged to provide the remainder needed if it does not secure outside investment.
A spokesman for the Department of Finance declined to comment. EBS spokesman Gerry O'Sullivan wasn't immediately available for comment. Irish Life spokesman Ray Gordon wasn't immediately available for comment, while James Morrissey, a spokesman for Cardinal, declined to comment.
Chief executive of WL Ross and Co Wilbur Ross said on September 15th that he was "optimistic" his bid to buy EBS would succeed, and the group may buy more distressed Irish lenders.
Irish Life is looking to merge its banking unit, Permanent TSB, with EBS, according to three people familiar with the matter.
Bloomberg