AIB share 'factors in takeover premium'

A TAKEOVER premium is factored into the AIB Bank share price but not Bank of Ireland or Irish Life and Permanent, according to a leading banking analyst.

AIB shares raced ahead yesterday by 2.67% but eased later in the day to close at €16.40, up 29 cents, an increase of 1.8%.

Dolmen Stockbrokers analyst Stuart Draper said AIB share values, trading at near year highs, already include a takeover premium in the wake of yesterday's revelations that the AIB board discussed selling the company to M&T Bank in the US.