State set for 70% bank stake

THE state is set to take a majority shareholding — potentially up to 70% — in Bank of Ireland later this month, as it looks increasingly unlikely that all existing shareholders will take part in its latest rights issue.

The bank’s full recapitalisation plan — of which the rights issue comprises a large element — was formally approved by stockholders yesterday, despite a number of retail shareholders attacking the plan at an extraordinary general meeting in Dublin.

Bank of Ireland said last Friday that it was aiming to raise €1.91 billion from the rights issue — which is being underwritten by the state. If all existing shareholders take up their rights, the state’s 36% stake in the bank would be reduced to 29.2%.