"A price of €2 a share would be lower than where the stock traded (€2.35 each) before its board announced the launch of a formal sale process led by Goldman Sachs on October 30. The shares shot up after that announcement and have hovered around €3.20 each since in anticipation a buyer would pay a premium to buy the bank as a whole. RBC points to what they see as tow big drags on the potential price."
"well short of any prospect of breaking even on the remaining shortfall on the cost of rescuing the bank. Taxpayers have recouped around €2.8bn of the cost of the former Irish Life & Permanent (IL&P) since its rescue, including from the €1.3bn sale of Irish Life back in 2013. A sale at €2 a share, if the Government allowed that to happen, would crystalize a €530m cash loss on the bailout."
Royal Bank of Canada (RBC) judges an acquirer unlikely to pay more than €2 per share (€1.1bn) for PTSB. RBC sees limited appeal to cross-border banks given PTSB's small scale and limited synergy potential, and expects private equity to be less likely to pay a premium without significant restructuring. The bank's revenues remain highly dependent on net interest income amid falling rates, and RBC projects PTSB will have the worst cost-to-income ratio among EU and UK banks by 2027. A €2 share price would value the State stake at €631m and could crystallize a €530m cash loss.
Read at Irish Independent
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