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infomatique via Creative Commons
AIB
AIB holding EGM to discuss US stake sale
Bank holds first shareholder meeting since it emerged state’s 90% stake in bank would wipe out ordinary shareholders.
AIB IS HOLDING AN EXTRAORDINARY general meeting today to seek shareholder’s approval for the sale of its US bank stake.
The meeting will be the first time shareholders meet bank management since it emerged the state would take a 90% stake in AIB.
The sale of its 22% shareholding in US lender M&T is expected to earn the bank €900m, the Irish Times reports.
AIB sold its shares in a Polish bank, Bank Zachodni WBK, last month for €3.1bn to Spain’s Santander.
The sales are part of the bank’s efforts to raise €7.4bn by the end of the year to meet capitalisation levels set by the Financial Regulator. The government has committed up to €3,7bn to AIB via share issues.
Last week, David Hodgkinson was appointed as executive chairman of AIB and will today address shareholders for the first time. Many of them have seen their shares drop from €23 to just 34 cent, according to RTE.
The meeting starts at 11am.
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