Bank of Ireland has lost out to Pimco and Goldman Sachs for control of a €1.8bn mortgage book being sold by Danske Bank.
The successful bidders have agreed to pay in the region of 95c in the euro, beating competition from Bank of Ireland, Elliott Management and UK insurer Prudential.
Bank of Ireland is understood to have invested considerable time and resources in mounting a bid for a portfolio that is equivalent in size to two years of new lending for the bank.
“This was a big transaction, even by European standards, and Bank of Ireland will be bitterly disappointed that it wasn’t successful,” said one source close to the bidding.
Bidders were attracted by the chance to buy a large portfolio of mostly performing…