The Irish government has taken a
15.7 percent stake in Bank of Ireland, after the European Union
blocked its original plan to receive a €250 million ($337 million)
cash dividend.
The state was issued with 184 million shares,
worth €250 million, despite the fact it had hoped for a cash
payment.
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Last year, the government pumped €3.5 billion
into the beleaguered bank after the Irish banking sector was hit by
the global recession.
The bank had planned to pay an annual dividend
of 8 percent in return for the capital injection but the EU stopped
bailed out banks making such payments as it would mean a direct
transfer of money from the government to private investors.
The bank is planning to issue additional stock
later in the year.
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By GlobalData
