Business Irish

Sunday 4 December 2016

AIB’s €3.1bn deal in balance

Published 12/09/2010 | 09:01

AIB’s €3.1bn "fire sale" deal to offload its Polish banking business Banco Zachodni to jumbo Spanish bank, Santander, hinges onshareholder approval.

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The Irish bank may pay a minuscule €7.5m “break fee” if the deal collapses.

Santander is also thought to be interested in AIB’s 22 per cent stake in US bank M&T, which was worth about €1.8bn on Friday. The successful sale of both stakes would net AIB nearly €4.9bn before fees.

CEO Colm Doherty will need to raise €7.4bn for its shattered balance sheet, so it will need €2.5bn more, possibly through a rights issue.

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