EBS has confirmed that it is in talks which could lead to a private equity investment in the building society. If a deal proceeds it could reduce or replace the need for recapitalisation funds from the State.
Talks on merging of EBS and Irish Nationwide into a third banking force have stalled. Both organisation have been asked to submit restructuring plans to the European Commission.
In the meantime private equity group Cardinal Capital Group has made an approach to EBS. The building society needs €875m of new capital.
Today, its chief executive Fergus Murphy said a private equity deal could fully or partially take the place of capital provided by the State. Any deal could see new investors becoming substantial shareholders in EBS.
But Mr Murphy stressed that talks were at an early stage and the banking environment was changing rapidly.
