The Irish Government has obtained an Order from the High Court directing Irish Life and Permanent to take steps to prepare for the disposal of its life assurance arm, Irish Life. It has also been reported that Bank of Ireland is in talks with a number of private investors regarding a possible sale of a stake in the bank.

The recent Central Bank stress tests showed that Irish Life and Permanent, which had not needed recapitalisation to date, requires €4 billion in capital to survive. It is hoped that the sale of Irish Life would raise up to €1.5 billion towards that figure. Separately, it has been reported that the Irish Government is prepared to sell a stake of its shareholding in Bank of Ireland. Among the US private investors believed to be interested in a possible sale, is global private investment firm, TPG.

Contributed by Brendan Cahill.