Oireachtas Joint and Select Committees

Thursday, 1 October 2015

Public Accounts Committee

National Asset Management Agency: Financial Statements 2014 (Resumed)

10:00 am

Mr. Frank Daly:

That is not the way it works. We had no idea that Fortress was not going to meet the reserve until the final bids came in on whatever day it was, at the same time, from Cerberus and Fortress. We had no idea that Fortress was not going to make the reserve price and neither did Cerberus have any idea that Fortress was not going to make it. That is where the competition is, and Lazards in particular would be very clear that this competitive tension was there. It is not unusual for a reserve price to be just met or barely exceeded, or exceeded as it was in this case. It is not unusual, either, for somebody to come in below a reserve price. As I explained earlier, they might just be trying it on, they might hope that nobody else-----

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