AIB voices shares concern

AIB said today that it is hoping to avoid the situation where the Government increases its shareholding in the bank beyond the current 93%.

Talks are continuing with the Government regarding the required raising of capital by the bank.

It is part of the statutory requirements for AIB as one of the two 'pillar' banks.

AIB says if further shares are issued they would be at a very low price, thus diluting the value of shares held by shareholders other than the State.

In addition, this would mean the State's stake in the bank would be far higher than it is at present.