Allied Irish Banks PLC, the lender being taken over by Ireland's government, said it will raise about $2 billion from the sale of its 22.4% stake in M&T Bank Corp. of Buffalo to meet stricter capital requirements.

The Dublin bank will offer 26.7 million notes at $77.50 apiece that will be exchanged for shares in M&T by Nov. 15, it said late Wednesday.

It plans to hold a meeting of shareholders on Nov. 1 to seek their approval.

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