Dunne raises stake in Jurys Doyle

PROPERTY developer Sean Dunne has added to his Jurys Doyle stake in a further move to safeguard his attempt to buy the hotel group’s €260 million Ballsbridge site.

According to a statement to the Irish Stock Exchange from Dolmen Stockbrokers, Mr Dunne bought more than 170,000 shares at a price of €18.49 on Wednesday.

Meanwhile, shares in the hotel group hit a new high yesterday of €19, up over 3% from Wednesday’s close, suggesting some investors believe a bid for the group is still on the cards.

Mr Dunne won the hotly-contested battle to gain control of the site, but his current share-buying spree is regarded as a defensive move.

Market sources do not believe he has plans to bid for the entire group.

In May, Greham Hotels owner Precinct made an initial approach that put a value of €15.25 on Jurys shares.

Subsequent revised indicative offers pushed the value of the group up to €1.14m before the Precinct bid fell apart. The group had the backing of the powerful Reubens brothers from London who were expected to return to the fray with a fresh bid of their own.

Quinlan Private and Paddy Kelly also indicated they might be interested parties, but never made offers.

Liam Carroll of Dunloe Ewart later took a stake of 8% in the group and it was speculated the Doyle family, with 29.9% of the equity, and Mr Carroll could vote to block the sale of the Ballsbridge site to Mr Dunne.

Sources close to the Doyles deny this is the case. Provided Mr Dunne makes no move considered hostile by the family of the late PV Doyle, who with the Beatty family and others have more 40% of the equity in the business sewn up, they will vote on September 27 in favour of the deal to sell the 4.8 acres in Ballsbridge to Mr Dunne.

In its statement to the Irish Stock Exchange, Dolmen Stockbrokers said Mr Dunne had brought his total stake in the business to 24.22%.

By mid-afternoon Jurys Doyle shares were trading at €18.93, up 53c on the day, well above their previous high of €18.50. Shares in Jurys Doyle have gained more than 50% since the Precinct consortium first indicated its interest in making a bid for the company.

The current share prices suggest some investors expect a bid will still be made to buy Jurys Doyle.

But a number of significant shareholders are believed to favour keeping the group intact.

The Beatty family was reported to be a seller of stock in a report last week, fuelling speculation they would accept an offer if one were tabled for the group.

But they then upped their stake in the business, putting paid to the notion they wanted out.

At this stage, up to 40% of the equity in the hotel chain is held by parties who will not sell out because they wish to see the company remain a publicly-quoted business.

Weekend reports the Doyle family might make a takeover bid for the group was dismissed as fanciful, given that they own 29.9% of the operation.

As well as this, the Beatty family and others are also believed to be in favour of keeping the present structure intact.