No Quinn sale yet - administrator

The administrators of Quinn Insurance have moved to clarify the situation surrounding the sale of the Irish insurer, in an email sent to its staff yesterday.

Joint administrator Michael McAteer of Grant Thornton said negotiations are at an "advanced stage" but that a conclusion might not be reached for up to four weeks.

A joint bid between Anglo Irish Bank and US insurer Liberty Mutual has been heavily mooted. Zurich has also been mentioned as a strong contender to buy Quinn Insurance. The Quinn family, including founder Sean Quinn, are not involved in the bidding.

The update followed a meeting with the Employee Representative Committee (ERC) over jobs. It also reveals that McAteer warned staff not to take "inappropriate action" that could prejudice the bidding process.

The administrators cut 900 jobs last April, one month after the Irish Financial Regulator applied to the High Court to appoint joint provisional administrators because of serious concerns over Quinn Insurance's solvency.

In the note, McAteer said it is was an "opportune time given the advanced status of the sale process" to update staff.

"Negotiations with a number of bidders are at an advanced stage and this was the appropriate time to remind politicians that maximisation of jobs is a key criteria," he said.

"As I have stated previously there is no Quinn / Anglo proposal. There is no Quinn family proposal. I would like to clarify that the bidders we are currently negotiating with have submitted their proposals through the appropriate channels within the stipulated timeline. These comply with the set criteria, including evidence of ability to finance the transaction and be in a position to receive regulatory approval.

"We will continue to work to preserve the maximum number of jobs across the business. It is important that to keep this process competitive with a number of parties at the table. The key objective is to avoid a scenario where there is no sale. The completion of this process is likely to conclude no sooner than two weeks and no longer than four weeks.

"It appears that there has been a suggestion that a deal has been completed. I can confirm once again no deal has been completed or has been finalised. We are seeking to negotiate the best deal subject to getting a sale completed."

In a warning to staff, he said: "I would be concerned that there appears to be a number of other rumours encouraging staff to take inappropriate action and I would fear, for the first time, that this type of action could prejudice the process and therefore the future of the business. I would respectfully suggest that staff recognise how any type of action or behaviour could be interpreted by a bidder."

He added: "Again I appreciate that these are extremely difficult times but ask that you continue to demonstrate the professionalism and integrity that has been shown to date by all staff."