BoI shares fall due to concerns over rights issue

BANK of Ireland shares fell almost 7% in early trading yesterday after the bank announced details of a €1.1 billion rights issue late on Friday to raise capital to shore up its balance sheet after a surge of bad debts caused by collapse of the property market.

By noon, the bank’s share price was down by over 10% to €1.43 but then started to recover as the market had time to digest the offer.

BoI was still among the big losers yesterday, falling 5.2% to €1.46 on the day.