AIB hands 18% shareholding to state

THE Government moved a step closer to acquiring a controlling stake in AIB as the bank handed over an 18% shareholding to the state yesterday.

An annual dividend on the Government’s €3.5 billion preference shares, which amounts to €280m was due yesterday and AIB confirmed that this will not be paid in cash, prompting the state shareholding.

The European Commission has requested that AIB issue over 198 million ordinary shares to the Government by way of bonus issue.