THE MALLABRACA consortium of Irish and foreign investors has expressed concern to the National Treasury Management Agency (NTMA) about its slow response to the group’s proposals to invest in the banking sector.
The private equity group told the NTMA in recent days that it was putting its interest in Anglo Irish Bank on hold, pending investigations into the bank by the Garda and the Office of the Director of Corporate Enforcement.
The group, which has about €5 billion at its disposal to invest, has assembled a management team, led by David Morgan, former chief executive of Australian bank Westpac, that it would appoint to an Irish bank should it take a majority stake.
Mallabraca comprises Dublin asset management companies Cardinal and Sorrento, US private equity firms JC Flowers and Carlyle and New York investment bank Sandler O’Neill. It also has access to Middle Eastern sovereign wealth (state-owned) funds.
The group previously has been linked with an investment in Bank of Ireland and possibly a merged financial institution comprising Bank of Ireland and Irish Life Permanent. It has also expressed an interest in Anglo.
The group’s interest in Anglo Irish has grown since the nationalisation of the bank last month.
Mallabraca has indicated it would be willing to invest in Anglo Irish in return for a majority stake if the Government agreed to indemnify the consortium and share the risk of projected higher losses at the bank.
The consortium had no comment to make yesterday but was believed to be preparing to make its first public statement on its future intentions.
The group is expected to say that it has held discussions with the NTMA and the Department of Finance about making a substantial equity investment in the Irish banking sector and that it can guarantee deposit funding and a management team of international renown as part of the investment.
The consortium sees itself as a long-term investor in the banks.
Minister for Finance Brian Lenihan has said he would welcome private investment “on suitable terms”.
He said he had assessed proposals from private equity firms but they were rejected because the Government “couldn’t guarantee the public interest in relation to the investment”.
