Allied Irish Banks Plc faced a fall in its shares in Dublin trading amidst the concerns that the Government is all set to claim a majority stake in it owing to the decline in its business because of the real estate bad debts.

Dublin-based Allied Iris reported in its main discussion with the financial regulator about the drop of 17 percent to 1.41 euros. The shares of the company faced a drop of 22 percent earlier which has proved out to be the biggest intraday fall. Its competitor, Bank of Ireland Plc had to face the drop from 6 percent to 1.31 euros.

Brian Lenihan, Finance Minister, is ready to chalk out a financial plan soon due to the need of tightening as the bank has taken over the path of deriving toxic loans from lenders. This move by the bank will make the Government lose on the cash as the declining lender's capital will require more cash inject.

It has been reported by the leading newspapers that the Government is planning to acquire 70 percent stake.

Emer Lang, an analyst at Davy said, "A majority shareholding for Allied Irish would clearly be an unwelcome development for existing shareholders and stands in stark contrast to management's preferred self-help strategy aimed at avoiding government control".