AIB to sell off stake in US bank
EMBATTLED AIB is due to offload its stake in American bank M&T for $77.50 (€55.45) per share.
The group has revealed that following a breakdown in talks with Santander, it would sell off its 22.4pc interest in the Buffalo-based bank in a public offering of shares.
Last week, the Government said it would inject up to €3bn into Allied Irish, which would ultimately make the State the majority stakeholder.
AIB must sell off its operations to generate capital before the end of the year.
It recently sold its Polish banking business to Spanish bank Santander for €2.5bn.
But even after selling both M&T and Santander, the bank still has almost €7bn left to raise.
AIB has a requirement of €10.4bn which the regulator called for last week.
The bank will hold an extraordinary general meeting on November 1 to look for shareholder approval for the sale.
The Government, which owns 19pc of AIB, will underwrite a €5.4bn capital raising next month.