Bank of Ireland Said Near Capital Deal Limiting Stake

Bank of Ireland Plc, ordered by regulators to raise 2.2 billion euros ($3 billion) by the end of the month, is close to an agreement for the government to provide capital without increasing its stake in the lender, according to two people with knowledge of the situation.

Ireland, which owns 36 percent of the Bank of Ireland, plans to acquire about 1.4 billion euros of non-voting shares in the Dublin-based lender, according to the people, who declined to comment because the talks aren’t complete. The securities would convert into stock if the bank failed to raise the same amount in a later rights offering to repay the government, they said. An announcement may be made next week, and shareholder approval is required, one person said.