Anglo submits its final plan for Quinn takeover
Bank's bid in partnership with US insurance giant after failure to revive deal with family
Published 29/01/2011 | 05:00
ANGLO Irish Bank has submitted a final version of its Quinn Insurance takeover plan to the National Treasury Management Agency in recent days.
The news comes as the battle to take over Quinn Insurance Limited (QIL) reaches its final stage with as few as two bidders left in the running.
The plan submitted to the NTMA is believed to involve Anglo buying QIL in partnership with US insurance giant Liberty Mutual.
The bid involves an upfront injection of about €600m in cash, which includes a "significant" contribution from Liberty, the Irish Independent understands.
Recent attempts to revive a deal between Anglo and the Quinn family, which the Quinn family said would save maximum jobs at the insurer, have failed.
The NTMA is reviewing Anglo's bid because it has delegated responsibility for overseeing the state's interests in banks, including nationalised Anglo.
A spokesman for the NTMA last night declined to comment and said he could not give any timeframe for making a decision on the Anglo bid. If it gets the nod from the NTMA, Anglo's bid must also be approved by regulatory authorities at the Central Bank of Ireland.
The QIL bid may also be included in the overall Anglo business plan which is being submitted to the European Commission on Monday.
Anglo is pursuing QIL because it believes taking control of the insurer is the best way of recouping a €2.8bn debt owed by QIL founder Sean Quinn and his family.
The Quinn contingent has been pushing Anglo to include them in their plans to take over the insurer and to ditch trade partner Liberty.
They say a Quinn/Anglo bid would preserve the maximum number of jobs in the insurer and would also secure the future of the wider Quinn Group.
They are against adding Liberty to the mix, because they want all of QIL's future earnings and all the cash achieved from a future sale of QIL to be offset against the €2.8bn debt.
The plan has widespread political support, but Anglo believe that going with Liberty will minimise the risk to the taxpayer and will also reduce the amount of upfront cash Anglo has to put in.
The nationalised bank is also mindful of the perceived need to "de-Quinn" the insurer in order to get regulatory approval for the deal.
Regulatory breaches when the insurer was under the control of the Quinn family were blamed when the Financial Regulator put QIL into administration last April.