Iconic Dublin department store, Arnotts, has been taken over jointly by Anglo Irish Bank and Ulster Bank follwing the company’s difficulties in repaying loans believed to be in the region of €250million.
Anglo Irish Bank, which is in state ownership, has sought permission from the European Union to initiate the move under EU rules. A deadline of 9 August for objections to the move has been set.
It is understood that none of the 950 jobs at Arnotts is under threat and that the store, located on Henry Street in Dublin, is trading well.
The share price of Allied Irish Bank (AIB), Ireland‘s largest Bank dipped below €2 in early trading this morning with a slight rally later but a sharp drop again after lunch.
As I write, it has dropped again to just above the €2 mark:
AIB Price Nov 20 08
This follows hot on the heels of Bank of Ireland (BOI) falling below the landmark €1 mark on Monday of this week after their announcement that they were completely cancelling their dividend payment policy. This was followed by Anglo Irish bank falling below €1 yesterday.
AIB shares have fallen over 90% in value since the peak in early 2007. If they are to fall below the €1 it would mark almost complete wipeout for the Irish banking sector in just a few months.