74 Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to the fact that it is customary when a company engages in a rights issue that the price of the shares issued thereunder be set at a significant discount to the prevailing market price to attract investors; the reason he intends to press ahead with the €5.4 billion AIB rights issue at a price of 50 cent, when the market price was varied between 20 to 40% below this level; the level of private sector take up of these rights he would expect if the price remains significantly below the price of the rights issue; his views on whether, in the event that the National Pension Reserve Fund were to take up the entire rights issue, this would entail both a significant and immediate loss to the NPRF and a corresponding gain to existing shareholders whose shares would not then be diluted to the extent that would have been the case had the price of the rights issue been set at or below market price; and if he will make a statement on the matter. [41645/10]

Summary

74 Deputy Joan Burton asked the Minister for Finance if his attention has been drawn to the fact that it is customary when a company engages in a rights issue that the price of the shares issued thereunder be set at a significant discount to the prevailing market price to attract investors; the reason he intends to press ahead with the €5.4 billion AIB rights issue at a price of 50 cent, when the market price was varied between 20 to 40% below this level; the level of private sector take up of these rights he would expect if the price remains significantly below the price of the rights issue; his views on whether, in the event that the National Pension Reserve Fund were to take up the entire rights issue, this would entail both a significant and immediate loss to the NPRF and a corresponding gain to existing shareholders whose shares would not then be diluted to the extent that would have been the case had the price of the rights issue been set at or below market price; and if he will make a statement on the matter. [41645/10]

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