Bank Of Ireland Confirms Share Sale By Wilbur Ross, Stock Down

(RTTNews) - Confirming speculation, Bank of Ireland (IRE, BKIR.L) said Tuesday that billionaire investor Wilbur Ross, Jr has notified the company of his resignation as a director of the company, and the agreement by Ross and certain funds connected with him to sell their remaining shares of around 1.8 billion units in the lender. The stock fell close to 5 percent in early morning trade.

Reports had emerged on Monday that Ross is selling his entire 5.5 percent stake in Ireland's largest bank by assets.

Deutsche Bank AG was reportedly acting as the sole bookrunner and placing agent for the sale of the American investor's 1.8 billion Bank of Ireland shares. The shares are being offered at 26 to 27.5 euro cents per share, pricing the holding at 468 million to 495 million euros, the reports added.

Ross has almost tripled his investment in Dublin-based Bank of Ireland in almost three years. In 2011, Ross's WL Ross & Co., Fairfax Financial Holdings Ltd. (FRFHF)and three other investors paid 1.1 billion euros, or 10 cents per share, for a 34.9 percent stake in Bank of Ireland. The deal with Ross and Fairfax enabled Bank of Ireland to avoid state control as its bad loans mounted following a real-estate collapse.

In March this year, Ross and Fairfax are said to have sold about 2 billion shares in the bank at 32.8 euro cents per share each, thus reducing Ross' stake in Bank of Ireland to 5.5 percent from around 9 percent. The Irish government remains the largest shareholder in the bank with a 14 percent stake.

Meanwhile, Fairfax Financial Chairman and CEO Prem Watsa has reportedly pledged to maintain his 5.8 percent stake in the bank in the long term.

Bank of Ireland today appreciated the comments Ross separately made to the media regarding the rationale for the share placing and his resignation from the Board. Archie Kane, Chairman of the Bank of Ireland Group, said, ''On behalf of the Board I would like to thank Wilbur for his contribution, diligence and commitment as a Board member. Wilbur was instrumental in the success of the 2011 capital raising and, throughout his tenure, we have benefited greatly from his insights".

The stock is losing 4.8 percent in early morning trade on the LSE at 0.270 pence.