NEW YORK — Allied Irish Banks PLC said Tuesday that it plans to sell its 22.5% stake in M&T Bank Corp. by year-end to fulfill the capital requirements of its Irish regulators.

The Dublin bank got 27.6 million shares of M&T when M&T, of Buffalo, N.Y., acquired Allfirst Financial Inc. of Baltimore from AIB in 2003. Since then, the two banks have described their relationship as one of mutual interest, though AIB has repeatedly been rumored to be interested in selling its stake.

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