Give IL&P shareholders first option, says chief of IAIM
Current shareholders in Irish Life & Permanent (IL&P) should be given the first option to buy shares in the life and investment parts of the business when they are sold in a public offering, according to the head of Ireland’s lobby group for institutional investors.
Frank O’Dwyer, chief executive of the Irish Association of Investment Managers (IAIM), told The Sunday Business Post that he believed a mechanism should be devised to give existing investors in IL&P shares first crack at the stock issue later this year.
‘‘Shareholders have taken a loss," he said. ‘‘If a way can be found, without prejudice, to secure their right to subscribe, it would be fair."
O’Dwyer added that this was his view as the chief executive of the IAIM and not an official view of the association. He said the IAIM had not met to discuss the government’s plans for IL&P.
Minister for Finance Michael Noonan announced last week that the life and banking sides of IL&P would be separated.
This would allow the profitable life and investments half to be sold back into the market in an initial public offering (IPO).
Permanent TSB would either become a niche mortgage bank or be wound down as its portfolio of mortgages is paid off. Equity holders in IL&P took massive losses last week, as word leaked out that it would be nationalised.
The shares were suspended for two days, and lost 60 per cent of their value when trading resumed on Friday.
Central Bank stress tests revealed that Permanent TSB would need €4 billion in capital over the next three years, some of which is expected to come from the IPO.
http://www.sbpost.ie/news/ireland/...on-says-chief-of-iaim-55512.html -----------
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