Allied Irish Banks to Sell M&T Bank Stake for $2 Billion

Allied Irish Banks (AIB), the lender being taken over the Irish government, will raise roughly $2 billion by selling its 22.4% stake in M&T Bank Corp (MTB).

The Dublin-based bank will offer 26.7 million notes for a price of $77.50 each, Bloomberg News said. The notes will be exchanged for shares in M&T by Nov. 15.

Sponsored Links
The bank will put the plan to shareholders at a meeting on Nov. 1.

AIB is selling the stake in order to raise capital. Regulators have ordered the bank to raise 10.4 billion euros ($14.6 billion) to meet new capital requirements.

The Irish government said last week it would take a majority stake in AIB. Irish banks including AIB and Anglo-Irish Bank are still struggling with bad loans made during the country's real estate boom.

Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.