Bank of Ireland shares rise on recap plan

City A.M. Reporter
Bank of Ireland shares surged by as much as a third early on Friday after the Irish government told banks to raise €24bn (£21bn) and unveiled a radical shake-up of the industry.

Bank of Ireland has been told to raise €5.2bn and said it is attempting to raise funds privately. If it cannot, it will be majority owned by the government. Its shares were up 26 per cent at €0.278 this morning.

But shares in Irish Life & Permanent slumped 59 per cent as trading resumed after the government announced its plans late on Thursday.

Allied Irish Banks shares were down 15 per cent.