IL&P signals opposition to merger

Updated: 12:34, Saturday, 29 November 2008

The Government has continued negotiations about reforming the Irish banks with financial institutions.

1 of 1Brian Lenihan - Talks to discuss capital & merger options
Brian Lenihan - Talks to discuss capital & merger options

EBS, Irish Life and Permanent and Irish Nationwide met the Minister for Finance Brian Lenihan this morning.

Anglo Irish Bank, AIB and Bank of Ireland held negotiations with the minister tonight.

Last week, the banks listened to what Minister Lenihan had to say about the Irish banking industry.

Today's deliberations are part of a process to restructure and refinance the lenders.

They come after a series of potential investors opened talks with the banks about becoming involved in a recapitalisation.

Some bankers were left reeling last week following their meeting with Minister Lenihan. It was at these discussions that the possibility of a radical wave of mergers was discussed.

Since then a variety of private equity groups and a number of asset management companies have begun talks with banks. That could lead to investment in the lenders to boost their levels of capital.

At present, Irish banks have far less capital than those in Britain which is worrying investors in light of the banks' exposure to property.

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