The Irish government currently holds only 18% of Allied Irish Banks, but might raise its stake to 91.5%, nationalizing the bank. This comes as the troubled bank is having trouble raising necessary money in order to operate, and as the government has sweeping powers for a cash injection and a takeover.
Neil Hume reports
Although the terms of the injection aren’t yet clear, broker Davy says shareholders are going to be diluted out of sight.
Bad news for Allied Irish (nyse:aib) and another weight on EUR/USD.
Euro/Dollar currently trades at 1.3105, in the lower range. See more levels in the EUR/USD outlook.