AIB buy-back plan well on target

AIB’S 420 million share buy-back scheme, using half the $900m in cash it received from the fire-sale of Allfirst in the US, has already netted 30% of its target.

Yesterday morning, AIB announced that last Friday, it purchased ten million of its ordinary shares, at an average price of €12.85, to be held as treasury shares at a total cost of close to €128.5m. Yesterday, AIB shares closed at 13.05. The buy-back has a direct impact on EPS as no dividend will be paid on the treasury shares which may or may not be reissued by the bank.

AIB expected to buy the bulk of shares in its buy-back spree at close to €13. The buyback operation was triggered by the completion of the sale of troubled subsidiary Allfirst to M&T Bank.