AIB seen by analysts as one of the most exposed large lenders across Europe
Paschal Donohoe, who is expected to be the Minister for Finance in the next Government. He will have to decide a strategy to sell down the State's remaining shareholding in AIB and could decide to front load a sale of shares. Photograph: Sam Boal/Collins Photos
He would live to regret not following up quickly with further share sales as AIB’s stock remained on a high for next 12 months or so, before sliding over the following three years – hit by wider market jitters, concerns over low interest rates and weak loan demand and, of course, the initial effects of the pandemic.
But what had become a routine 5 per cent stake sale in November in recent years was put on ice as we headed to the polls. Talk has been mounting that the new Government – most likely with Donohoe once again in the finance role – will move quickly to make another stock placing. Reports over the weekend suggest a 10 per cent stake sale could be in the offing before AIB goes into a pre-results closed period on February 5th. That would raise close about €1.25 billion at current levels, assuming a discount would be applied to sell a large block in the market. It would bring the total taxpayer recovery to about €18.2 billion, with the remaining holding worth about €1.15 billion.
Aib Paschal-Donohoe Jack-Chambers Michael-Mcgrath
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