PTSB tells High Court Axis has €100 on balance sheet as €1.6bn Bawag deal heads to hearing

The High Court in Dublin heard arguments Tuesday over whether advisory group Axis Capital can disrupt Austrian banking group Bawag's €1.6 billion offer for Permanent TSB. Kelley Smith SC, counsel for PTSB, told Judge Michael Quinn that Axis Capital is "nowhere near a position to make an offer" to rival Bawag's €2.97 per share proposal. Axis has proposed €3.20 per share.

Axis Capital is cofounded by Mark Duffy, formerly chief executive of Bank of Smith Ireland, and Lutz Hartmann, a Frankfurt-based international lawyer. Smith pointed to financial accounts for the year ended May 2026 that showed €100 on the company's balance sheet. "Axis is a €100 micro company," she said. Smith added that Axis "has no track record in M&A transactions" and "lacks the resources to actually implement an offer."

Duffy asked Judge Michael Quinn for "one minute" of his time. "What has struck me since yesterday, particularly over the past few minutes, is that everyone is talking about the Bawag offer. There is at least one other offer, that comes from Axis," he said. Duffy said the offer "is not speculative" and is supported by "one of the most esteemed investment banks in the world. We have a credible route to funding." He added, "We want access to information and limited time to consider this information." Last week, Axis Capital announced it would seek an adjournment of up to six weeks.

Earlier in the proceedings, Des Carville, head of the shareholding and financial advisory division at the Department of Finance, testified about Minister for Finance Simon Harris's decision to use the State's 57.5 per cent stake in PTSB to support Bawag's offer. "Price was the first and foremost consideration," Carville said. He said the other points were secondary and flow from the transaction. Carville said it took 13 years to reach a point of satisfaction with a PTSB takeover bid.

Piotr Skoczylas, managing director of Scotchstone Capital, which owns less than 1 per cent of PTSB, questioned Carville on what formed part of the minister's assessment. Three shareholders have objected to the deal. The proceedings are scheduled to continue.