Seen&Heard: sale of AIB shares likely to be put off until after election
Snippets from the business stories that were making the news over the weekend
Minister for Finance Michael Noonan: officials in his department have been diverted into dealing with the row over IBRC. Photograph: Dara Mac Dónaill/The Irish Times
The planned sale of AIB shares on the stock market is unlikely to take place before the general election, according to the Sunday Times.
The newspaper reported that a number of factors were working against the the plan to offer the banks’ shares for sale, including the fact that Department of Finance officials have been diverted into dealing with the row over the Irish Banking Resolution Corporation.
“A row over variable rate mortgages and the uncertain timing of a general election also weigh against the prospect of an imminent flotation,” the Sunday Times said.
It said one source warned that potential investors were concerned about the risks of increased political interference in the banks on the back of the recent dispute over variable rate mortgages. It is also feared opposition parties will become more strident on that issue in the run-up to election.
Concerns over Dún Laoghaire firm
Shortly before he went to Health, Leo Varadkar wrote to the firm highlighting concerns “at the approach adopted by the company in recent years when it comes to meeting the corporate governance standards expected by the Government”. He warned the company was undermining its relationship with its shareholder and expressed disappointment that it had not sought ministerial consent for some of its activities.
His successor, Paschal Donohoe, pinpointed similar concerns and criticised its lack of engagement with its shareholder under the Harbours Acts.
Speaking to the Sunday Independent, Mr McMurtry said in the event of a “Brexit”, the “sensible thing would be to move some manufacturing for European customers [from Britain] to Dublin”.