Shares in Bank of Ireland rose by almost 17 per cent in early trade today following reports of an impending bid worth more than 2.5 billion Euros from a consortium. The Irish Independent newspaper has reported that investment company Cardinal Asset Management has put together a bid looking to obtain 60 per cent of Bank of Ireland. The bid is partly funded by private equity firms Carlyle and KKR. Such rumours were lend extra credence by a separate article in the Irish Times, suggesting that a group of US private investors were looking to buy a stake of the Bank of Ireland.
The news follows the decision of the Irish government to guarantee bank liabilities totalling 440 billion Euros, becoming one of the first nations to offer such a guarantee. The government has not, however, raised equity themselves or nationalized any banks . Yesterday, Irelands Finance Minister, Brian Lenihan, revealed that he is talking to banks about reform measures to shore up credit supply. He refused to comment on a rumoured impending recapitalization plan, however. There has been speculation that the government was hoping to create two super banks based around Bank of Ireland and AIB.






