The run up of AIB's share price yesterday provided the main focus of interest as the rumour machine churned out Lloyds TSB as the latest suitor to the Irish group. AIB's price rose by 5.5 per cent on the day, from €17.20 (£13.55) to €18.15 (£14.29), having reached an intra-day high of €18.70 (£14.73). One dealer said that the latest news, which follows hard on the heels of Deutsche Bank being an interested party, was "nothing other than rumour". The rumour comes complete with the suggestion that a bid of £15 sterling (€21.76) per share would be made by the interested party. However, the feeling is that AIB would be a better fit for Lloyds TSB through savings on a merged British operation, while there would be less scope for a cost overlap from a German bidder.
Following the recent lacklustre performance, the other main stocks were also spurred into action. Bank of Ireland gained 25 cents, closing at €20.10 (£15.83), CRH notched up 20 cents, rising to €14.75 (£11.62), and Smurfit gained one cent, closing at €1.44 (£1.13). With the exception of Irish Life which rose by five cents to €8.30 (£6.54), the other financials failed to mark any upward movement.
Elan bolstered the index, with its price increasing by $3.64 to €62.515 (£49.23).
One dealer said the market had taken on a two-tiered structure, with second-liners generally easing back. Following its profit warning, IWP eased back another five cents to €1.55 (£1.22), after its 10 cents slippage on Monday. But the exploration stock, Ovoca, saw a six cent rise in its p rice to €0.48 (38p).
