AIB: Irish government set to sell off Allied Irish Banks shares

The Irish government is to start selling its 71% shareholding in Allied Irish Banks (AIB).

The bank was effectively nationalised in 2010 during the Irish banking and property crisis.

The sell-off will begin in January in a process managed by investment bank Merrill Lynch.

AIB's improved financial performance meant there was a supportive environment to reduce our shareholding, the finance minister said.

Pascal Donohoe added that shares would not be sold below a certain, undisclosed, price in order to ensure the taxpayers' interest is protected.

The sales process will run for an initial six-month period and can then be renewed.

Earlier this year the Irish government began selling its smaller shareholding in Bank of Ireland.

It has reduced its shareholding from 14% to about 9% since June.

"Given the thinner liquidity in AIB shares, I expect the pace of share sales to be slower than what we've seen at Bank of Ireland, but it is important that we make further progress on what will be a multi-year journey," said Mr Donohoe.