IAIM OUTLINES FRESH BANKS PLAN - A number of investment institutions have confirmed that they have approached the Government with a proposal to co-invest with the state in re-capitalising the Irish banks. The proposal would involve large pension funds and could also facilitate individual investors.
The new initiative is being co-ordinated by the Irish Association of Investment Managers.
IAIM chief executive Frank O'Dwyer said banks had been recapitalised in a number of other countries in recent weeks, resulting in some existing longer-term shareholders receiving a less favourable deal.
He said a number of institutions, who were long-term holders of Irish banks and other equities, had come to IAIM suggesting a direct approach to the Government and the banks about an investment.
Mr O'Dwyer said the group involved Irish and overseas investment institutions, but he would not be drawn on the possible size of the investment other than to say that there were sufficient funds available.
He said the institutions believed there was an opportunity for a good investment in re-capitalisation, and the state would also receive a good return if it invested.
Mr O'Dwyer said there was no suggestion of any institution using its own funds to invest in its parent company. He said such funds were held on behalf of clients.
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RUSH OF BLEAK RETAIL FIGURES - There has been some bleak news from the retail business. Simon Burke, chief executive of Superquinn, is predicting big job losses in the sector after Christmas and has described sales in the last week as the worst in a decade.
Gerry Harvey, the man behind Harvey Norman, says its investment in Ireland has been catastrophic and revealed sales at its 13 stores here were between 25% and 40% down on last year.
A buyer is being sought for British retail giant Woolworths which is gone into administration - the wages of 30,000 workers with woolies are being guaranteed only until Friday.
DSG International, Europe's second-largest electrical goods retailer, has swung into the red in the first half of its financial year. The company, which owns Currys and PC World, says the economic backdrop here in Ireland is 'very tough'.
