EBS chief Fergus Murphy: building society needs €875m to meet regulator's capital requirements

EBS building society will choose a preferred bidder from the four groups chasing it next month.

It is expected that once the preferred bidder is picked, a deal to buy the loss-making building society will be wrapped up in a matter of weeks.

The building society and its advisers, KPMG and NCB Stockbrokers, began studying the four bids from Irish Life & Permanent and three private equity groups – Cardinal Asset Management, JC Flowers & Co and Doughty Hanson – in the last couple of weeks.

It is understood that the bids envisage the government providing some support to the EBS. The building society requires €875m to meet the Financial Regulator's capital requirements. It has reduced the capital target by €90m through a bond exchange.

Cardinal Asset Management, run by the former Mallabraca consortium frontmen Nick Corcoran and Nigel McDermott, have drafted in the American private firm Carlyle Group to help finance their bid.