AIB to sell Zachodni stake to Santander

Spain's Santander has agreed to buy a majority stake in Poland's Bank Zachodni from Allied Irish Banks for ?€3.1 billion (£2.6bn).

AIB - Ireland's second-largest bank - said the sale of Zachodni, the jewel in its crown, would generate €2.5bn in equity tier 1 capital, giving it a third of the €7.4bn in additional capital it needs to raise before the end of the year to avoid the Irish government taking a significant equity stake.