UPDATE 1-Bank of Ireland gets 59.5 pct rights issue take up Wed Jul 27, 2011 3:11am EDT * Take up is higher than expected * Rump to be placed between new investors and state (Adds further detail, analyst's comment) DUBLIN, July 27 - Almost 60 percent of Bank of Ireland shareholders took up shares in the lender's rights issue, it said on Wednesday, a better than expected result that is now expected to cap the state's stake in the bank at between 20 and 30 percent. Analysts had expected a weak take-up of the government-underwritten, 18-for-five rights issue at 10 euro cents a share after investors shelled out last year for a rights issue at 55 cents apiece. However the bank sold a 1.1 billion-euro ($1.6 billion) stake to a group of unidentified investors on Monday, ensuring it would stay out of full state control and changing shareholder sentiment at the last minute. The bank said on Wednesday that it will make an announcement in due course regarding the allocation of the new shares. The "rump" that remains will be placed between the new investors and the government. "Following the announcement that a group of institutional investors is investing circa 1.1 billion euros in the bank, the take-up rate of 59.55 percent is positive for the bank," Dublin-based Glas Securities said in a note. "This should result in government ownership of the bank in the 20-30 percent area." (Reporting by Padraic Halpin; Editing by Greg Mahlich) http://www.reuters.com/article/2011/07/27/...ancialsSector&rpc=43 |