BOI bids to improve shares

BANK of IRELAND Group has continued its share buy-back strategy aimed at improving its flagging share price.

It announced yesterday it had purchased 1,685,000 shares at €9.5987 per share.

The bank commenced a share buy-back initiative in mid-February and with the latest purchase, has retrieved 13,445,055 shares, making up 1.3% of the issued ordinary share capital of the group.

Overall, the shares were purchased at an average price of €9.8989 per unit.

Bank of Ireland directors met early last week to discuss the share price weakness relative to the sector and to examine investor relations strategy.

Goodbody Stockbrokers, owned by AIB Group, believes concerns about the group are overdone.

It says the shares are a good buy but recognises investor concern over group strategy and the bank’s exposure to the British mortgage market through its subsidiary Bristol & West. B&W is in bad shape on a cost basis and badly needs a bolt-on acquisition BOI chief executive, Mike Soden, saw Abbey National as the answer .

But its bid for Abbey National was blown out of the water before it even got a chance to put a firm offer on the table.

Prior to that the group’s attempt to buy another British financial group, Alliance & Leicester also foundered.

There is concern in the bank that another high-profile failure would irreparably damage the bank. Further attempted takeovers are likely to be more modest in scale.