AIB confirms discussions with M&T

AIB has confirmed it is in discussions with American bank M&T for the sale of its US subsidiary Allfirst and the merger is expected to be announced later today.

It’s understood AIB will receive a 22% stake in M&T as part of the deal, rumoured to be worth about $3bn (€3.06bn).

If the deal goes ahead, complete ownership of Allfirst will transfer to M&T.

The Baltimore Allfirst branch hit the headlines last February after rogue trader John Rusnak notched up nearly $700m (€715m) in losses.

Rusnak is set to face charges of fraud in US Federal Court next February.