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Bank Of Ireland EGC Proposal

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  • 25-04-2017 12:54pm
    #1
    pugleon
    Registered Users Posts: 155 ✭✭


    Hi All

    Ordinary share holder in BOI. Invested at the bottom. So currently down a little but not as much as others I expect. Have some other Irish bank holdings that were to be short term and ended up on my books far longer than expected as well. My question is this.

    The proposed changes to be voted on at the EGC this week. Particularly around Resolution 7. Isn't this just a move to introduce more shares (diluting existing shares). And resolution 8-9 is just granting authority for the bank to sell those shares without offering them to existing shareholders.

    So bottom line they want to raise cash to buy out the Governments holdings at the expense of the shareholders? And have also decided to not pay dividends yet again this year. Am I missing something here?


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    #2
    The Cuban
    Closed Accounts Posts: 492 ✭✭The Cuban


    No not as I see it. Its a restructuring of the Bank. In the future if another Bailout was required then they would be able to do so at the expense of existing shareholders and Bondholders. But this is only if we revisit 2008 again, which isnt due yet, we have to have the full Boom here we go again I have 3 houses and after buying an apartment in Azerbaijan part of the cycle.
    Till then, sit back let the share price keep rising, then rise even more to stupid levels and collect all the Dividends along the way.


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    #3
    pugleon
    Registered Users Posts: 155 ✭✭pugleon


    Well its been ten years and the shares have yet to pay any dividends. At least AIB have started to do this. BOI have started to take care of their books and made good efforts in comparison to other Irish banks. But then BOI didnt have to have the massive propping up other banks did. Do you really see a future where the shareholder is put first. After a decade of neglect, and no share price increase really worth noting in that time.

    In my eyes getting the Government out of their 14 ish percent holdings is great, and high time it happened. But doing so at the expense of the shareholders. Well couldn't they raise capital some other way? And isn't hitting the shareholders with diluted shares just decreasing investor confidence going forward?


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