A leading market analyst warns that that Government's sale of AIB "cannot go wrong" and must be done with "all the transparency in the world."
Speaking to Newstalk Breakfast, David Buik, market commentator for Panmure Gordon and Co, cautions that if the Government is over-eager to get back the public money that has been invested in AIB - and looks to sell the bank quickly - that would make for a "dreadful advertisement."
Mr Buik continues: "Remember, you have a banking system behind you in Ireland that needs nourishment, and tender love and kindness. This one cannot go wrong - it has to be done well, and it has to be done with all the transparency in the world."
Finance Minister, Michael Noonan revealed yesterday that he believes Ireland can get back nearly all of the €29.5bn that the State has pumped into AIB, Bank of Ireland and Permanent TSB.
David Buik praised Ireland's dealing with the fallout of the financial crisis, saying, "Ireland's record in the last three to four years has been absolutely amazing in terms of embracing horrible austerity - and doing it well. It's probably made the greatest recovery of any economy in the European Union."
He believes that the strength of Ireland's economic recovery will encourage investors to put money into the state-owned bank - adding, that the bank could make for an attractive investment.
The commentator did however warn that this would be subject to a rigorous examination of the bank - he says that if the bank has too much of its lending in property, "that could make people feel extremely uncomfortable."
He says that it would be unwise for the Government to sell more than 10 to 15 percent of the bank in the initial sale - as a successful offering would attract more investors.
