UK group linked to €1bn bid for IL&P
Published 21/02/2010 | 05:00
Resolution, the British private equity group, is thought to be considering a €1bn bid for Irish Life & Permanent.
IL&P shares soared 15 per cent in heavy sales on suggestions that the €2.5bn-valued Resolution was on the prowl.
Last week, Resolution boss John Tiner indicated he was "very confident" of making two major acquisitions in the next three years. Last year, Resolution spent over €2bn buying Friends Provident.
Resolution, which was set up by financier Clive Cowdery, plans to buy up undervalued insurance assets and merge them into a larger entity before floating the new business on stockmarkets in 2012.
IL&P boss Kevin Murphy is planning to hive off the banking business from the Irish life insurance operations.
Market sources have told the Sunday Independent that moves to include Permanent TSB in the so-called "Third Force" of Irish banking have stalled. It is thought a merged entity of EBS and Irish Nationwide may seek up to €500m from IL&P to take over the struggling Permanent TSB operations.