AIB FACES VALUATION UNCERTAINTY AS IT PREPARES TO OFFLOAD FOREIGN ASSETS - Allied Irish Banks is on track to dispose of key foreign assets but faces "uncertainty" as to whether they will achieve expected valuations, as financial market upheavals continue, according to a top regulatory official, writes the Irish Independent. Jonathan McMahon, assistant director general of financial supervision, said the Financial Regulator was "very involved" in AIB's disposal programme as it races to hit an end-of-year deadline to raise capital. AIB has been directed to raise €7.4 billion to reach an equity core tier one ratio - a key measure of a lender's stability - of 7% by the end of the year. The regulator has applied a 45% discount to all of AIB's NAMA-bound loans in coming up with the target. The bank has already signalled the sale of its Polish division, Bank Zachodni WBK, as well as its 22.5% stake in US regional lender M&T and AIB's UK unit. The bank has also attracted an approach from Kerry-based financial services company Fexco for its Goodbody Stockbrokers business, though a deal here is unlikely to add to AIB's capital base.
***
JUDGE PULLS OUT OF RYANAIR CASE WITHOUT ALTERING PREVIOUS FINDINGS OR COMMENTS - A High Court judge has said he does not resile "one iota" from his findings and comments in a recent court action that Ryanair told untruths to and about the court and about Minister for Transport Noel Dempsey and that the airline and the truth made "uncomfortable bedfellows", says the Irish Times. It was hard to see how any other judge, on the evidence, could have concluded otherwise, Mr Justice Peter Kelly said yesterday when deciding another judge would hear a separate action against Ryanair by three airport authorities over alleged delays in paying airport charges. The judge stressed his decision to have the authorities' case heard by another judge was to ensure that case was not delayed or made more costly by Ryanair's application for him to withdraw on grounds it had a reasonable apprehension the judge was biased against it. He was not to be taken as accepting, in whole or in part, that Ryanair's claims in its motion were or might be correct, nor was he ruling himself out from the possibility of hearing other cases involving Ryanair. If Ryanair or its agents misrepresented his decision on this application or the basis and rationale for it, he would regard such misrepresentation as a contempt of court, he warned. Ryanair had applied last week to Mr Justice Kelly to withdraw from hearing the authorities action and all proceedings involving Ryanair on grounds of "a reasonable apprehension" of bias given his conduct of recent proceedings brought by Ryanair. The judge adjourned the matter to yesterday after directing Ryanair to put its case on affidavit.
***
COUPLE SUES DOLMEN FOR €1m - A couple and their company have sued Dolmen Stockbrokers for more than €1 million losses allegedly incurred through unauthorised use of the plaintiffs' securities trading accounts to enter into transactions for Dolmen's own benefit. The Irish Examainer says that it is further alleged the stockbrokers failed to provide indemnities. Patrick Purcell claims he agreed to enter into a series of transactions between 2006 and 2008 on behalf of the plaintiffs as a result of emotional pressure and/or undue influence placed upon him by Dolmen director Stephen Tynan. He claims Mr Tynan assured him the plaintiffs would be indemnified against any losses suffered as a result but to date had failed to do so and, as a result, the plaintifs had suffered losses of more than €855,000. It is also claimed Dolmen, through Mr Tynan, entered into a series of unauthorised transactions using the plaintiffs' accounts in which shares in companies were purchased and sold without the plaintiffs' prior knowledge, consent or instruction.
***
NEW CHANNEL 4 BOSS CULLS QUARTER OF MANAGERS IN MAJOR OVERHAUL - David Abraham is making his mark as the new chief executive of Channel 4 by slashing a quarter of senior managers and calling for a "fundamental evolution" at the group, writes the London Independent. The former advertising executive had pledged to restructure the broadcaster shortly after taking over at the beginning of May, and yesterday he announced an overhaul of the business, focused on greater integration of its digital operations. The new shape of C4 will see online commissioning and production combined with its TV equivalent to form a single division. David Abraham said: "We are going further than any other broadcaster has yet gone to fully integrate our commissioning and content teams as we anticipate the tipping point in the convergence of television with other media." One industry expert said: "C4 needs to survive the downturn, and in the absence of a deal or the ability to buy its way out, it needs to focus on reorganisation and cutting costs." Insiders denied the changes were just a dressed up cost-cutting exercise. One said the company had already cut its workforce by 23% to less than 700 in the past 18 months to cope with the advertising downturn, and was now positioning itself for the recovery.
