AIB gets a ‘free pass’ on €21bn it owes us
Such a sweet gesture from our EU saviour overlords. Too kind.
Just another kick in the nads for the Irish taxpayer.
eh, you lads realise the Irish gov is 99% owner of AIB?
ah yeah blame the EU
Even Noonan has spotted the mispricing,…
Speaking in Limerick at the launch of AIB’s refurbished flagship branch and self service lobby on O’Connell Street, Mr Noonan said shares in the bank are currently overvalued.
“The value attributed to the shares in the stock market at the moment would put a nominal value of €55bn on AIB, it’s not worth that. So the shares are overvalued but it’s because of the restructuring.
“So I am issuing a kind of a warning to investors. Wait until it’s restructured before you buy. If you buy now you will lose money.”
The Minister for Finance also revealed that a plan to restore AIB to the private sector would be announced before Christmas.
“It will be a long process. I am not announcing an imminent sale of AIB or anything like that. I am saying that before very long and certainly before Christmas all interests will come together.
What a bizarre statement for Noonan to make. He’s obviously trying to crash the share price, but why I wonder?
the price will crash anyway when real money buys in at flotation time - he just doesn’t want muppets ringing Joe Duffy when it does (Disgrace, Joe; I put me pinisn into what I thought was a blue chip bank)
The current price has no benefit for the State (and its shareholding) - just the penny stock punters who happen to be long at the moment
But it seems very odd for a minister to talk down the stock of a bank he controls. And why right now?
Surely this is indicative of some impending capital restructuring event where a low share price would benefit the government somehow?
he can’t sell it without the price crashing; if he pretends like it’s not insane then he looks like an idiot to everyone except the financial illiterates who are bidding it up
like? any restructuring/sell off wouldn’t be using the loony price anyway
Maybe Denis O’Brien, Mario Draghi and the Bilderburgs told him to?
Exactly, he’s trying to point out that the price must drop by about 80%.
So basically, he doesn’t want to be accused of selling it for “less than it’s worth”. Makes sense.
You know - I hadn’t even thought of that.
But yeah, there’d be some spinning it like that due to a combination of malice and ignorance
Massive selling volume into the close . . . finally people are realising . . . knocked it 13% on the day
Tinfoil hat on - what am I missing? What was Noonan’s aim in making that statement?
Go back a page
I wonder if any pension funds are still holding any AIB shares?
Any placing of AIB stock would happen at around €0.02. The increase in free float with that alone would reprice the stock. I’ve already seen lots of misinformed comments about the government giving away the stock etc so I would imagine that’s what he’s trying to combat. To be fair, this isn’t the wool being pulled over anyone’s eyes. The company itself has made numerous comments about how the stock is overpriced.
Maybe little Dennis want’s a Bank for Christmas?
Good time to short?