Saturday 21 April 2018

Green light imminent for the flotation of AIB

Announcement: Finance Minister Michael Noonan
Announcement: Finance Minister Michael Noonan
Charlie Weston

Charlie Weston

Finance Minister Michael Noonan is expected to receive the green light for the flotation of AIB at Cabinet as early as Tuesday, with an announcement the following day.

The way has been cleared after the High Court rejected an application aimed at preventing the sale of the Government's shareholding.

The Central Bank and the Irish Stock Exchange have been called on to stop "eejits" buying shares in AIB ahead of the flotation.

Investors are likely to lose up to 50pc of the value of shares they buy now, according to market analyst Paul Sommerville.

The share price has shot up in the last month as retail investors have piled into the stock.

Mr Sommerville said it was "fraudulent" of stockbrokers to be facilitating sales ahead of the flotation and that buyers were victims of a scam.

The Irish Stock Exchange rejected suggestions it should restrict trading in AIB as there are willing buyers and sellers.

The Central Bank, which has responsibility for stock exchange conduct of business and investor protection, said the market in AIB shares may be volatile, but it did not necessarily mean that it was disorderly.

Irish Independent

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