AIB shareholders to seek more answers at bank’s EGM

AIB shareholders will be looking for answers on the bank’s bleak future from new executive chairman David Hodgkinson at tomorrow’s extraordinary general meeting to vote on the disposal of AIB’s share in M&T Bank.

Hodgkinson, who will be making his first official appearance since being appointed earlier this month to replace outgoing chair Dan O’Connor, will be expected to update shell-shocked investors about the bank’s plans for a rights issue next month.

The fundraising is part of an overall plan to gather more than €10bn in capital to help the bank absorb massive losses on asset transfers to Nama.

The writedowns on its Nama-bound loans have been so large, the Central Bank added an extra €3bn to its capital bill in September, all but guaranteeing the state would have to step in with fresh money and increase its stake to upwards of 90%.

Cinema expansion plans denied

Ward Anderson’s Irish Multiplex Cinemas has been refused permission for the expansion of its multiplex cinema in Dun Laoghaire. The council turned down the application because it felt that there was a shortfall in the car parking required for the development and that therefore it would create “an unacceptable level of nuisance for local residents and emergency vehicles”.

Cork engineering company sees 30% rise in turnover

Cork-based Dornan Engineering has managed a 30% annual increase in turnover in the past year by positioning itself in the growing German and Scandinavian markets. The company, a supplier of mechanical and technical services to big industrial projects, is expecting to record €65m in turnover this year, up from €50m in 2009. Dornan is involved in some major contracts in Ireland, including a fit-out of Google’s Dublin campus, but its growth is coming from recent major wins in Germany, the UK, Belgium and Sweden. “We were fortunate to have positioned ourselves in markets outside of Ireland in advance of the downturn and are enjoying considerable growth there,” said managing director Oliver Lonergan. The firm employs 720 people.

Sutherland warns about protectionism

Peter Sutherland, non-executive chairman of Goldman Sachs International and a former attorney general, said the economic recovery is dependent on countries not “succumbing” to protectionism. Protectionism often occurs after “rapid volatility in currencies” and Group of 20 nations such as China need to take “brave decisions”, Sutherland, a former EU commissioner, said at a conference in Dublin.