AIB in talks over capital raising
Allied Irish Banks announced yesterday that discussions are continuing with the Government over the terms and structure of a capital raising in order to satisfy recent stress tests. Ireland, which already owns 93 per cent of the bank, could end up taking more control of the bank and buying more shares, resulting in potentially significant additional dilution for existing ordinary shareholders other than the state. It is expected that discussions with the Government will finalised within a week and AIB then expects to be in a position to announce the final terms and structure of any capital raising transaction with the State.
AIB expects to remain as a listed firm.