HBOS linked with IL&P takeover

Scottish banking giant HBOS was linked this weekend with a possible move on Irish Life & Permanent.

Reports in Sunday's papers suggested that the company might be considering a €5bn deal to secure the company, after talks took place between the two sides in recent weeks.

IL&P shares have benefitted from this recent speculation.

A spokesman for IL&P said: "Neither the company, or anyone acting on its behalf, has been involved in any such discussions or talks with any representatives of HBOS."

HBOS also refused to comment on speculation.

Acquiring IL&P would not be the HBOS' first entry into the Irish market. In 1999, Bank of Scotland opened an Irish mortgage operation and in 2001 it paid €348m for state-owned business bank ICC.

IL&P is almost exclusively focused on the personal financial services sector. Almost 90% of its Permanent TSB banking subsidiary's loan book is in domestic home loans, with car loans second.

Its other major business is Irish Life, the country's largest life and pensions company.