Shareholders meet to decide Dunne deal

JURYS DOYLE shareholders will meet this morning to approve the sale of part of its land in Ballsbridge in Dublin.

The hotel group has agreed to sell almost five acres of prime land to the builder Sean Dunne for €260 million.

However, it is unclear if the vote will actually go ahead today with speculation the meeting might be adjourned to allow the major shareholders Mr Dunne and the Doyle family to come to some arrangement over the company's future.

The Doyle sisters have not indicated how they will vote at the meeting. The sisters and the Beatty family are planning a full takeover of the company but this needs the support of Mr Dunne to succeed.

Similarly, Mr Dunne requires the support of the Doyles for his purchase of the land in Ballsbridge. Mr Dunne is blocked from voting on the deal, leaving the sale in the hands of the Doyles.

If a shareholder asks for the meeting to be adjourned, it will be up to the chairman to grant the request. The extra time would give the Doyle and Mr Dunne time to work out a compromise.

The voting intentions of 8.3% shareholder Liam Carroll, the owner of property companies Zoe Developments and Dunloe Ewart, are also unknown at this stage. Market sources said yesterday that by blocking the sale to Mr Dunne the Doyles could find themselves on the defensive, as Mr Doyle would then have a financial war chest to mount a full takeover of the company a move he has already alluded to. As he has already bought Jurys' shares at a price above which the Doyles said they were prepared to pay for the company, Mr Dunne has indicated he is not prepared to let the Ballsbridge site slip of his hands.

The 4.83-acres site is currently home to the Jurys Ballsbridge Hotel and The Towers Hotels. The site is worth substantially more if redeveloped for luxury apartments. Jurys are also considering selling the remaining 2.1 acres it owns in Ballsbridge the site of the Berkeley Court Hotel.

The land, if redeveloped for residential use, would yield enormous profits as it is in the most exclusive area of the city where houses change hands for millions.

The Jurys board have backed the sale of the land, believing it is in the best interest of all shareholders.

Shares in the company eased back 1.3% yesterday to €18.55, valuing Jurys at €1.17 billion.