The family of Fermanagh-born businessman Seán Quinn has taken a 15 per cent stake in Anglo Irish Bank shares.
In a statement this morning, the Quinn family said they were the process of unwinding their interests held in Anglo Irish Bank through contracts for difference and were purchasing “long holdings in the bank’s ordinary shares”.
Contracts for difference (CFDs) allow an investor to bet on share price movements without owning any of the stock. The buyer and seller of a CFD agree to exchange the difference in the asset price between the opening and closing of the contract.
Mr Quinn, who is chairman of the Quinn Group and one of Ireland's wealthiest men said: "The family regards these shareholdings in Anglo Irish Bank as long term holdings with significant opportunity for capital growth over such a period."
"In recent years, we have been highly impressed with Anglo's ability to outperform the banking sector in terms of profit growth and we are confident this trend can be maintained over the longer term notwithstanding the current difficulties being experienced in international banking."
Media reports from September 2007 suggested that Mr Quinn may have owned up to 11 per cent of Anglo's shares - 6 per cent through Credit Suisse and the balance in contracts for difference.
At this time Anglo's shares were trading between €13 and €14, suggesting the Quinn family may be nursing a paper loss on their share holding.
A spokesman declined to say at what price the Quinn family had purchased the shares nor when the process started.
Kevin McConnell, head of equity research at brokerage Bloxham, said global worries about the financial sector would overshadow the Quinns' announcement, while the transactions required to convert the Quinn's stake may also dent the stock for technical reasons.
"The market is still in a state of extreme stress, particularly the financial stocks," McConnell said.
The Quinn Group includes insurer Quinn Direct, cement plants, hotels, bars and the Belfry golf course in England.
Shares in Anglo Irish Bank have lost 70 per cent of their value over the last year and closed yesterday at €4.36, a fall of 1.4 per cent. At this share price the company has a market cap of €3.31 billion.
