Oct. 6 (Bloomberg) -- Delphi Financial Group Inc. dropped out of the race to acquire Irish Life & Permanent Plc’s life assurance unit as bidders prepare second-round offers within the next two weeks, according to two people with direct knowledge of the matter.
The Wilmington, Delaware-based insurer, which specializes in employee benefits for companies, was among five parties short-listed by the Irish Life and its advisers Deutsche Bank AG for the business, three people with knowledge of the situation said Aug. 19. The others were a joint bid by U.S. leveraged- buyout firms JC Flowers & Co. and Apollo Global Management LLC as well as offers from CVC Capital Partners Ltd., the London- based private-equity firm, U.S. insurer Unum Group and Great- West Lifeco Inc.’s Canada Life Ireland, they said.
Ireland’s government is forcing the breakup of Irish Life to recoup some of the cost of bailing out the Dublin-based lender’s unprofitable banking unit. The life unit had an embedded value, an estimate of a life insurer’s worth based future profits of existing policyholders, of 1.59 billion euros ($2.1 billion) at the end of June, according to the company.
Bernard Kilkelly, vice president of investor relations at Delphi Financial, declined to comment yesterday. Irish Life spokesman Ray Gordon wasn’t available for comment.
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