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Bank of Ireland eyes rights issue
BANK of Ireland is understood to be planning a rights issue in November to buy out some of the government’s indirect 25 per cent stake in the lender.
The move could raise the €1.5bn (£1.3bn) necessary to limit the Irish government’s preference shares at 15 per cent, minimising the possibility of majority stake ownership after risky property loans are transferred to Ireland’s “bad bank”. The bank received a state capital injection of €3.5bn earlier this year.
Bank of Ireland declined to comment on speculation.