Shares in AIB bank - whose value slumped earlier this month following confirmation of an €800m alleged fraud loss at an American subsidiary - soared in price on the stock exchange today following renewed takeover speculation.

Allied Irish Bank, Ireland’s biggest bank, today confirmed the consequences on its results of the suspected $750m (€866m) fraud loss at one of its American subsidiaries.

Allied Irish Bank, Ireland’s biggest bank, was today presenting its annual results in Dublin, just two weeks after confirming a massive deficit of more than €866m at an US subsidiary.