EBS bidder suggests cutting repayments

One of the bidders for the EBS has said that it would consider reducing mortgage interest repayments mortgage-holders would be required to pay.

Speaking on CNBC television, veteran investor Wilbur Ross, who is part of the Carlyle consortium which is bidding for the building society, said banks may have to write down the amount they are owed if a bank repossessed a home.

Mr Ross is part of a consortium that includes US private equity giant Carlyle, and Dublin-based private equity group, Cardinal, led by Nick Corcoran and Nigel McDermott.

There are three other bidders in the race; Irish Life & Permanent, UK based Doughty Hanson, and JC Flowers.

Mr Ross said the transaction could be completed by the end of next week.

It is envisaged that private investors in the 75-year-old mutual would take up to a 70 per cent stake in the EBS.

The building society is expected to choose either a preferred bidder or two short-listed bidders over the coming weeks. A final decision on a preferred bidder or short-listed bidders is thought to have been delayed by the agency’s work on the Government’s plan for Anglo Irish Bank announced last week.

EBS is working with the National Treasury Management Agency, the State agency which manages the Government's banking matters, on the offers.

The four parties bidding for EBS have plans to buy and merge the society with other lenders to create a so-called third force in Irish banking to compete with the two largest banks, Allied Irish Banks and Bank of Ireland.