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Bank of Ireland's shares jumped today amid speculation that the troubled Irish banking system is on the brink of dramatic change. The Dublin-based bank admitted that it had received "unsolicited approaches" after its shares jumped 14%.
According to the Irish Times there have been talks between the finance minister, Brian Lenihan, and the six guaranteed banks and building societies about how to inject fresh capital into the banks.
The paper said a consortium of US private investors was interested in taking a large stake in Bank of Ireland and possibly a merged group comprising Bank of Ireland and Irish Life & Permanent.
Meanwhile the Irish Independent reported that a consortium was planning a €2.5bn (£2.09bn) to €3bn bid for a stake in the bank. It said investment company Cardinal Asset Management has assembled a bid, which includes funds from private equity groups Carlyle and KKR to buy up to a 60%.
In a statement to the stock exchange this morning, Bank of Ireland said: "In response to media speculation, Bank of Ireland states that it has received unsolicited approaches from a number of parties wishing to make an investment in the Group. No decision on these approaches has been made. Bank of Ireland will keep its stockholders informed as appropriate".
Bank of Ireland runs the accounts operated by Post Office which caused controversy two months ago when the Irish government put a blanket guarantee on all savings accounts.
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