Thursday 18 December 2014

Bank of Ireland shares fall 5pc after Wilbur Ross stock sale move

Wilbur Ross sells his stake in bank at 26.5c, making him just over €477m

Published 10/06/2014 | 08:16

Billionaire Wilbur Ross. Picture credit Mark Condren
Billionaire Wilbur Ross. Picture credit Mark Condren

SHARES in Bank of Ireland opened down this morning at 27c, or just under 5c off on yesterday's close following news of the sale of Wilbur Ross's entire remaining stake in the bank.

Deutsche Bank, which is selling the shares for the US billionaire, set the price at 26.5c - making about €480m for him.

Yesterday Mr Ross announced that he was putting his entire stake in Bank of Ireland on the market and that he was quitting the board.

Today Bank of Ireland also paid tribute to Mr Ross as an investor while chairman of the institution Archie Kane said he was instrumental in the bank's fundraising in 2011.

The Wall Street veteran has nearly tripled his original investment of €290m in just three years.

Just last March he raised €345m with an earlier share sale.

Mr Ross reaffirmed his support for Bank of Ireland's future following news of the sale.

He said it was on "on the right track".

He added in a statement that the move was "definitely not a negative comment on BoI or Ireland. Both are clearly on the right track."

Fellow shareholder Fairfax Financial did not participate in the sale.

Mr Ross told the Irish Independent last night that he was also stepping down from the board of the bank, blaming a European Commission rule that bars directors from sitting on the board of more than three banks.

Bank of Ireland, like other European institutions, faces up-coming European stress tests.

The State still owns 14pc of the bank's shares.

 

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