THE DEADLINE for final bids for the Educational Building Society has been pushed out to next year from December 22nd after higher capital targets were set for Irish banks under the €85 billion aid package.

The National Treasury Management Agency, which is managing the sale, is assessing the new capital targets for the building society and what this means for the sale. Discussions are continuing on a new deadline for final bids

Under the EU-IMF plan for the banks, EBS has until the end of February to raise a further €463 million in addition to €525 million it needs under a previous target. However, the building society’s capital requirements are likely to be decided under its takeover.

Irish Life and Permanent (ILP) and a private equity consortium, led by Dublin-based Cardinal Capital and backed by US buyout firms Carlyle Group and New York-based WL Ross and Co, are the final bidders in the process.

ILP must raise a further €98 million to bring its capital ratios above 12 per cent, but has until the end of May to reach this target and has said it can raise this on its own.

The Cardinal consortium and ILP have both signalled that they are still keen on taking over EBS despite the higher capital targets.

The latest bailout means that Cardinal must pay more up front, while ILP will require the Government to pump a higher level of cash into EBS under its proposal.

Cardinal is negotiating with the Government to share the higher €463 million requirement and to raise capital from a deal with EBS subordinated bondholders.