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AIB to sell shares of €6bn

THE Commercial Court has approved an application by Allied Irish Banks plc to reduce its share capital by almost €6bn.

The effectively nationalised bank wants the reduction to clear losses and to establish a reserve to meet other liabilities.

The move allows AIB to eliminate a €2.35bn deficit on the bank's profit and loss account, with the extra €3.6bn being used for various purposes including eliminating any future permanent losses.