Shareholders at BoI hit with massive losses
Published 24/11/2010 | 05:00
SHAREHOLDERS who loyally stumped up more money for Bank of Ireland's rights issue back in June have lost almost half their €1.7bn investment.
The massive losses came after BoI's shares fell to new lows yesterday as fearful investors dumped stock in Irish banks.
BoI's shares plunged as low as 25c, less than half the 55c a share investors paid out back in June. The shares later rallied to 29c, but were still almost 25pc down for the day.
The latest collapse will heap further pain on long-standing shareholders who have already seen their investments decimated.
Back in June, BoI said almost 95pc of its investors had taken up the option of buying more stock as part of the rights issue.
At the time, the 55c a share offer was at a healthy discount to the 77c a share price that prevailed in the market.
But the latest bailout talk has triggered fears that BoI will be forced to raise even more capital, in a move that would dilute shareholders even further.
Markets responded by selling off the shares en masse, making BoI the most traded stock on the Dublin index yesterday.