AIB says the taxpayer's stake in the bank is likely to increase 'substantially beyond' its current 93%.
In an update to the stock exchange, it said talks were continuing with the Government on how it would put money into the bank to help it meet targets set out by the Central Bank.
But AIB said that if the State were to do this by buying more shares, this was likely to be at a 'very low' price, and well below the current market price of 15.6 cent.
The bank said it expected discussions with the Government to be completed 'within the next week'. AIB needs to raise €13.3 billion of capital, though a plan to impose losses on subordinated bondholders is expected to contribute €1.6 billion.
AIB said it expected to remain as a listed company, which would allow shareholders continue to trade their shares.
IL&P trade sale preferred option - Noonan
The Government would prefer to sell Irish Life & Permanent's life insurance arm via a trade sale rather than a share flotation, Finance Minister Michael Noonan said today.
'We are within weeks of being able to announce that we are going to market to sell the insurance side. In the first instance we hope to do it by a trade sale. If that does not work there are obviously other options,' Noonan said in a speech at the Financial Services Ireland annual lunch in Dublin.
He added that he hoped Anglo Irish Bank would complete the sale of $10.3 billion of loans on US commercial property by the end of August or early September.
