AIB set to sell stake in M&T

AIB could be close to raising part of its end-of-year capital requirement through the sale of its 22.5% stake in New York-based M&T Bank.

Overseas press reports suggest Spanish banking giant Santander is in fresh talks regarding the takeover of the US institution. The Financial Times reported yesterday that Santander has resumed talks with M&T — which had earlier collapsed in May — over the potential merger with Santander’s existing American division Sovereign Bank, which was acquired for over $2bn in 2005. Part of such a deal would be the Spaniards snapping up AIB’s stake in M&T for around €1.15bn, say analysts.

“It appears the banks have sounded out regulators about a combination, including the Federal Reserve. However, it appears that the earlier sticking point — who controls the combined business — remains unresolved,” said Eamonn Hughes of Goodbody Stockbrokers.