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Bank shares rise after 24bn put into banks
Date 01/04/2011 14:03  Author webmaster  Hits 1117  Language Global
01 APR 2011

Irish Times

Shares in Bank of Ireland and AIB surged on the Irish market this morning as the bank said it planned to raise additional capital from existing shareholders and capital markets in an attempt to avoid State control.

In a statement this morning, Bank of Ireland said it was working with its advisers to meet the equity capital requirement through capital management initiatives, other capital markets sources, and support from existing shareholders.

Shares in the bank rose almost 32 per cent to 29 cent shortly after 9.15am as the stock resumed trading this morning.

AIB began the session by falliung as low as 14.1 cent, but reversed the losses and by 9.15am were trading 27 per cent higher at 24 cent.

The Government yesterday agreed to a €24 billion recapitalisation of the main Irish banks without attempting to force senior bondholders to share the burden.

It will be the fifth bailout of the banks since 2008 and brings the total State support to €70 billion. The governor of the Central Bank, Patrick Honohan, described the Irish banking crisis as one of the most expensive in history.

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See also:
Bondholders escape as €24bn put into banks (Irish Times)