Irish Life & Permanent has posted a document to shareholders ahead of its extraordinary general meeting due to take place on December 17.
The document gives details of the group's plan to create a new holding company called Irish Life & Permanent Group Holdings plc. The new holding company's prospectus has also been published.
The prospectus says the new structure will give the group the flexibility to restructure its life businesses - Irish Life, Permanent TSB and Irish Life Investment Managers.
It says there is no certainty as to what those changes would be, but refers to the current 'challenging environment' for Irish banks and the Government's support schemes for the sector.
The changes could allow IL&P to take part in the consolidation process in the building society sector. There has been talk of a link with EBS and Irish Nationwide for Permanent TSB. Yesterday, both EBS and the Finance Minister said talks would begin this week, and that Irish Nationwide and EBS were likely to agree a deal before Christmas.
The prospectus lists a number of potential risks facing the group, including economic conditions in Ireland, the impact of NAMA and possible significant changes in the structure of the Irish banking system.
It also says that the group 'is exposed to litigation and regulatory litigation risk including risks arising from transactions with Anglo Irish Bank'. A number of investigations are currently taking place into issues surrounding Anglo, including controversial deposits of €8.2 billion made by IL&P through its subsidiary Irish Life Assurance with Anglo during 2008. These led to three resignations at IL&P, including that of then chief executive Denis Casey.
IL&P also acknowledged there is a possibility of a significant fine over the transfers.
