Shares in Bank of Ireland rose in Dublin trading as J Christopher Flowers, founder of New York private- equity firm JC Flowers and Co, signalled he is continuing to look for Irish banking assets.
The stock climbed as much as 6.3 per cent by 1.20pm, trading at 34 cent. AIB was up 7.9 per cent to 37 cent.
Mr Flowers said in a Bloomberg News interview on December 3rd that "if we can find the right
opportunity to invest in Ireland, we would like to do that".
JC Flowers had been bidding for EBS Building Society, two people with knowledge of the talks said on September 8th.
A stake in AIB or Bank of Ireland, the country's biggest lenders, may be attractive depending on government guarantees on potential losses from toxic assets, Mr Flowers said in a Financial Times interview today. He also said that buying asset portfolios at discounts with government support
might be a more appealing investment in the short-term.
The Government said on November 28th that banks will be required to run down non-core assets, securitise or sell portfolios or divisions, with indemnities provided by the state if needed. The move is part of a bailout Ireland agreed with the European Union and the International Monetary Fund.
Central Bank Governor Patrick Honohan has said that some of the €10 billion to be allocated to banks from the bailout will be in the form of "credit enhancements," or loan-loss indemnities, to help banks dispose of assets.
Bloomberg