Cardinal Capital Group to become an unlimited company

CARDINAL CAPITAL Group Ltd, a company controlled by Nick Corcoran and Nigel McDermott, is to become an unlimited company.

The company has also changed its status from a single-member company to a multi-member company.

Cardinal is one of four bidders for the EBS building society. No comment was available from the company yesterday. However, it is believed the change in company status is not directly connected to its bid for the EBS.

The change in status to an unlimited company means that Cardinal will be no longer be obliged to file accounts, but its shareholders will have unlimited liabilities associated with the company.

Cardinal is believed to be supported by American investment firm Carlyle Group in its bid for the building society. The other three interested parties are Irish Life and Permanent, US private equity firm JC Flowers, and London-based private equity house Doughty Hanson.

There has been some speculation that Cardinal and Irish Life and Permanent will emerge as the two preferred bidders for the 75-year old mutual. However, all four bidders are still under consideration by the National Treasury Management Agency and EBS.

Yesterday Irish Life and Permanent chief executive Kevin Murphy confirmed the group has submitted its proposal in respect of EBS building society.

Publishing half-year results for IlP which showed that the group’s banking division, Permanent TSB, posted a loss of €131 million in the first half of the year, down 1 per cent on the same period last year, Mr Murphy said another Irish-based financial institution was needed to provide competition and consumer choice.

He said a merger with EBS could help create a “third force” for Irish banking. He expected a decision on the future of the EBS by the end of September.