DUBLIN, June 26 (Reuters) - Ireland plans to cut its

shareholding in AIB Group to 25.5% from 30.5% by way of

a placing to institutional investors, the government said on

Wednesday.

The finance ministry said in a statement that it plans to

sell 121 million shares in an accelerated placement in the bank,

which will begin immediately.

(Writing by Conor Humphries; Editing by Sharon Singleton)