The deal to buy back the bond means existing FBD shareholders no longer face the prospect of their stake being diluted. Fairfax had a right to convert the debt into a 19pc stake in FBD. Buying back the bond, and therefore cancelling the option to convert it to a stake in FBD means the prospect of the company becoming a takeover target also recedes, said Mr Sheridan. A new issue by FBD of 10-year subordinated bonds is now understood to be imminent. FBD CEO Fiona Muldoon described the buyback of the Fairfax bonds as a "great result" for shareholders.

Source: Irish Independent October 02, 2018 01:30 UTC