Wilbur Ross to Cash Out 5.5% Bank of Ireland Stake

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June 10 (Bloomberg) -- Bloomberg’s Dara Doyle reports on billionaire Wilbur Ross selling off his remaining stake in Bank of Ireland after almost tripling his investment in less than three years and looks at the state of the Irish economy as banks prepare for stress tests. He speaks on Bloomberg Television’s “The Pulse.”

It took a lot of nerves.

That is probably the biggest corporate story of the morning.

Shares in bank of ireland are under a lot of pressure this morning, understandably.

Wilbur ross is selling out his remaining 5.5% stake.

He has almost tripled his investment in less than three years.

What is ross saying about the move?

What he is saying today or last night is that this was a terrific investment.

Back in 2011, wilbur told the story -- he was watching ireland as it went through the horrors.

He got a call saying they were going to buy a stake in the bank of ireland.

Investors signaled to the international community that ireland was a place to invest in.

That strategy has worked.

Shares have tripled and he has tripled his money.

No wonder he is calling in a terrific investment.

What does it look like to you?

Where does the bank of ireland go from here?

What this does is it underscore the challenges facing bank of ireland.

His entry underscore the opportunity for investors looking to get into ireland at rock-bottom price.

His exit highlights the challenges going forward.

There is a perception that the irish economy is in reasonable shape.

If you look at some of the numbers, things are not quite so great.

They are still anemic.

Unemployment is still 11%. people are facing massive mortgages as a legacy from the crash.

Where do you get loan growth going forward?

Based on the fact that the economy is anemic.

And we are still dealing with the fallout from the crisis.

There are real challenges for the bank of ireland going forward at this point.

Rex npl's remain a problem.

The economy is not exactly back on its feet.

Still significant concerns.

We have stress tests from the ecb coming up towards the end of the year.

They have not always been the best editor of the capital requirements of irish banks, but what are they going to say this time around?

Irish banks needed 64 billion euros as a result of the crisis.

That is about 40% of gdp.

That figure pushed ireland into needing an international bailout in 2010. the good news is the yields are actually rising.

That is good news and gives them some comfort as the stress tests go forward.

What the policy makers are saying is that they probably will not need more capital after the stress test.

There are no guarantees.

But i think they are hopeful that they will not need to find another wilbur ross at the end of 2014. in fairness, bank of ireland shares are only down about 2.5%. given the fact that they sold a significant stake, it is probably reasonable.

Thank you very much indeed.

And the possible tie up between french mobile carriers looks to be struggling amid a huge difference of opinion in the price tag.

Here with more is caroline hyde.

It looks like bouygues thinks they are worth a lot more.

Almost double the amount that iliad, the new kid on the block him a the one who came in 2012 and started price wars, it is analyzing bouygues telecom unit.

This text has been automatically generated. It may not be 100% accurate.


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