SHAREHOLDERS IN IRISH Life and Permanent (IL&P) could reject a proposal to inject State capital into the bank that would effectively nationalise it.

Sources tell Reuters that there is a 50-50 chance of shareholders rejecting a resolution to inject €3.8 billion into the bank which would see ordinary shares issued to the government giving it 99 per cent control at today’s extraordinary general meeting (EGM).

If the proposal is voted through the group will also be delisted from the main stock markets here and in the UK. However if rejected the Minister for Finance Michael Noonan will need to use legislation to force through the recapitalisation.

Shareholders opposing the plan first pushed for an EGM in June.

The bank needs the money because of the Central Bank’s requirement that it raise around €4 billion to cushion itself against bad loads following the banking stress tests in March.

TV3 News reports that angry scenes are expected at the meeting of shareholders with four separate resolutions to be put forward opposing the takeover.

Reuters adds that only about 30 per cent of shareholders are expected to vote.