Ireland government to acquire another bank

By @ibtimes on

Ireland government announced its intention to acquire a fourth-bank in two years, aiming to support the faltering banking sector in the country, following the court's decision in allowing the government to acquire Allied Irish Banks PLC without the consent of shareholders.

Finance Minister Brian Lenihan stated that the government will inject €3.7 billion in the banking sector, while raising its stake in the bank above 90.0 percent. The ministry released a statement that This is to ensure that shares retain access to a public trading facility for their shares,adding that Shareholders' ownership of, and rights over, the existing ordinary shares will be unaffected by this move.

On the other hand, the bank released a statement today saying that The capital increase by year-end is, in the opinion of AIB's board of directors, critical for the continued activities of the company.

The bank's share sank more than 21.20% in trading today, as it lost €0.08 to trade at €0.31 a share.

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