Allied Irish Bank plans to sell its 22.4 percent stake in the United States bank, M&T in a public offering. This decision came after talks with potential buyers of their holding broke down.
It’s stake in M&T is worth $3.06 billion.
The Irish bank has already sold its Polish banking business to Santander for $3.48 billion. Talks with Santander, with relation to buying the M&T bank shares broke down recently.
The shares will now be sold at a discount price which would potentially leave the bank with a capital gain of $1.04 billion and $1.39 billion.
This November the Irish Government will take a majority stake in Allied Irish Bank. They will aim to help to reach the $14.5 billion capital target set by the Financial Regulator.
The bank will set the price of its M&T placing this week and must call an emergency general meeting for the shareholders to seek approval.