Some of the largest pension funds in Iceland, along with the Iceland Enterprise Investment Fund (FSÍ) and parties connected with MP Bank, have been involved in acquisition negotiations with the winding-up committee of Glitnir Bank regarding its 95 percent share in Íslandsbanki.

The negotiations are in the initial stages, although they have had a long prelude. Chair of Glitnir’s winding-up committee Steinunn Guðbjartsdóttir confirmed to Fréttablaðið last week that there is interest in Íslandsbanki and that the winding-up committee is willing to sell Glitnir’s share.

FSÍ has also confirmed its interest and at the same time Fréttablaðið learned that large pension funds were also behind the possible acquisition. These are the same pension funds that are the majority owners of FSÍ.

Representatives of MP Bank would not comment on the acquisition plans. The bank is believed to be involved in the negotiations as a consultant but its owners are also said to be keen on participating in the acquisition, especially its majority owner Skúli Mogensen.

Moreover, other investors, like insurance companies and asset management funds of other banks, are considered likely participants in such a large investment.

According to Fréttablaðið’s sources, the bidders are hoping to acquire the bank at a considerably lower price than the inner value of Glitnir’s share—ISK 133 billion (USD 1.0 billion, EUR 770 million)—or ISK 73-93 billion.

The aforementioned parties are also said to be interested in buying the 87-percent share the bankruptcy estate of Kaupþing holds in Arion Bank.

ESA