The EBS will receive bids from private equity groups and bancassurer Irish Life & Permanent in the next few days, sources familiar with the process said today.
The State-run building society has set a deadline of August 20th for offers and one source said three private equity groups - US firm JC Flowers, Britain's Doughty Hanson and Dublin-based Cardinal Asset Management - are expected to bid, as well as Irish Life & Permanent.
A second source confirmed the bancassurer will take part. Irish Life & Permanent declined to comment.
EBS needs to find €775 million by the end of the year to shore up its capital base following a property market collapse and tougher regulatory requirements.
The Government has already injected €100 million into the building society and has promised a further €250 million of the overall amount through a promissory note, which spreads actual payments out over up to 15 years.
The Government has said it would provide the rest of the money if EBS is unable to source the capital elsewhere.
Ireland's central bank governor Patrick Honohan signalled on Tuesday that the cost of bailing out another building society, Irish Nationwide could top the €2.7 billion already promised as its loans are transferred to a state-run "bad bank".
Reuters