NEWS ON EBS BUILDING SOCIETY BIDDERS TODAY? - It is thought that the Government may announce a shortlist of bidders to buy the EBS Building Society later today. Two of the four parties which expressed interest are set to be eliminated. The remaining bidders are widely rumoured to be Irish Life and Permanent and the private investors led by Dublin-based Cardinal Asset Management. The EBS has swallowed €350m of Government money to stay afloat with another €500m sanctioned by the EU to meet capital strength thresholds demanded by the Financial Regulator.
Oliver Gilvarry, head of research at Dolmen Stockbrokers, says that the Department of Finance is working with its advisors - overseen by the European Union - on the EBS Building Society plan. He says that transparency is key to any deal and that is why it may be taking so long. He also says the Government is trying to get the best possible deal available. Mr Gilvarry says the Government's idea of maintaining a third banking force is somewhat on the back-burner as it deals with the larger problems at Anglo Irish Bank and Irish Nationwide Building Society and also the recapitalsation of the country's two biggest banks - AIB and Bank of Ireland. He also said the mutual ethos is now gone in Ireland.
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The Society of Chartered Surveyors is holding its annual conference in Dublin. The event is being held in the new Dublin Convention Centre and the question is how dark are the clouds shining through that tilting atrium. The President of the Society of Chartered Surveyors, Peter Stapleton, says that the country is now at a signficant part of the readjustment phase of the economic cycle. He says that while property values are down about 50%, new opportunities are rising up for the construction sector and he predicts a very active management of loans in NAMA in the near future.
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MORNING BRIEFS - Google's latest quarterly results have beaten market expectations after it posted a 32% rise in profits. The internet giant made a net profit of $2.17 billion in the three months to 30 September, up from $1.6 billion the same time a year earlier. Google thanked higher advertising revenues, but also the success of its newer businesses, such as its Android mobile phone operating system. Its overall revenues were up 23% to $7.29 billion.
*** On the currency markets, the euro is worth $1.4074 US cents and 87.9 pence sterling.
