Consortium seeks to buy Bank of Ireland stake-papers

DUBLIN, Nov 21 (Reuters) - A consortium is planning a 2.5 billion to 3 billion-euro ($3.13-3.76 billion) bid for a stake in Bank of Ireland (BKIR.I) amid government plans for consolidation in the sector, the Irish Independent newspaper said on Friday. No one at the Bank of Ireland was immediately available for comment. Its shares rose nearly 17 percent in early trade.

Ireland was one of the first countries to respond to the credit crisis with a guarantee for bank liabilities worth some 440 billion euros, but it has not bailed out or nationalised any banks, and they have not raised equity themselves.

Irish Finance Minister Brian Lenihan said on Thursday he was talking to banks about reform measures to shore up credit supply in the economy, but would not comment on reports of an impending recapitalisation plan.

The Irish Independent, without citing sources, said on Friday investment company Cardinal Asset Management has assembled a bid, which includes funds from private equity groups Carlyle [CYL.UL] and KKR [KKR.UL], to buy up to a 60 percent stake in Bank of Ireland. No one could immediately be reached at any of the groups for comment.

Separately, the Irish Times said a consortium of U.S. private investors was interested in taking a large stake in Bank of Ireland and possibly a merged group comprising Bank of Ireland and Irish Life & Permanent (IPM.I).

The Irish Independent said IL&P was in preliminary takeover talks with Ireland's EBS building society. IL&P declined to comment, while EBS was not immediately available for comment.

Last month the country's four listed banks -- which also included Anglo Irish Bank (ANGL.I) and Allied Irish Banks (ALBK.I) -- were among the six Irish financial institutions that signed up to the government's two-year scheme.

Irish media said there was speculation the government was seeking to create two enlarged banks based around Bank of Ireland and AIB. A government source told Reuters there were discussions about restructuring and consolidation but added that talk of two enlarged banks was inaccurate.

Lenihan has held meetings with the heads of the six institutions which the finance ministry has described as "structured" discussions.

"The minister asked the guaranteed institutions to reflect on a number of matters," a finance ministry spokesman said on Friday. "Further discussions between the parties will resume in a week." (Reporting by Jonathan Saul; Editing by Greg Mahlich)