Shareholder fury as chairman fails to detail recapitalisation costs
Published 27/07/2011 | 05:00
AIB has forked out €17m for the services of Morgan Stanley so far this year and will pay millions more to other advisers involved in the bank's €13.3bn recapitalisation, executive chairman David Hodgkinson revealed yesterday.
But the bank's top man drew fury from his shareholders, and even a call for his resignation, when he admitted he didn't have figures to hand showing the total that AIB would spend on the recapitalisation bid.
Figures provided later showed AIB has so far spent €6.25m on advisers for its recapitalisation, including some of the cash paid to Morgan Stanley, which also advises the bank on other matters.
The bank will pay another €2m in fees for the final part of its recapitalisation, as the Government pumps in another €9.8bn in equity and lends a further €1.6bn in a so-called 'contingent convertible' instrument.
Mr Hodgkinson staunchly defended his unfamiliarity with the exact figures involved, stressing that not all bills had been finalised, but shareholder Neal Duggan was unimpressed, declaring: "This thing is ridiculous, you don't know what you're talking about."
Mr Duggan went on to request an adjournment of the meeting and suggested Mr Hodgkinson should consider his position.