Carville move may signal divestment advance

The appointment of Des Carville as head of the Department of Finance’s shareholder management unit could see an acceleration of the Government divestment of its stake in the pillar banks, according to Merrion Stockbroker analyst Ciaran Callaghan.

Mr Callaghan noted comments made by the secretary general of the Department of Finance, John Moran, that the position was being filled “at a key moment as we make decisions about the State’s ongoing share-holding in the banks”.

“Aside from the €1.8bn Government Preference Shares that are expected to be refinanced over coming months, the State also has a 15.1% equity stake in Bank of Ireland currently valued at roughly €1.2bn. Given the recent appreciation in the bank’s share price, which has increased by 170% year-to-date and currently trading on 1.4x 2013 tangible net asset value, we believe that the State may be considering its option to monetise its residual equity stake,” he said.