Jurys shareholders play the waiting game as Precinct receives bid extension

David Clerkin

The Irish Takeover Panel granted an extension to its latest deadline, which was due to expire yesterday, after the Jurys board agreed to Precinct’s request for more time to conduct due diligence.

Precinct, which owns the rival Gresham hotel group and has indicated it is prepared to pay up to E1.1bn for Jurys, would have been forced to make a formal bid or walk away for 12 months if the extension had not been granted.

Jurys Doyle told the stock exchange yesterday that Precinct was “satisfied with the results of its due diligence to date” and that the main purpose of the extension was to allow the investment group, which is headed by Irish businessmen Bryan Cullen, David Coleman and JJ Murphy and backed by Britain’s billionaire Reuben brothers, to complete its examination of Jurys Doyle’s books.

The Jurys board has said it will recommend Precinct’s E17.50 per share indicative offer if it is formally put to the company. But it reminded shareholders that there was no certainty a formal offer would be forthcoming.

Jurys Doyle shares closed 30c lower at E17.60 yesterday. The share price surged past the E17.50 barrier last week after millionaire property developer Sean Dunne built up a 3.4% stake in the company. Mr Dunne bought the shares in

advance of a forthcoming shareholder meeting, which will be held to approve his proposed E260 million purchase of the group’s site in Ballsbridge that currently houses two of its top hotels.

The Jurys Doyle board is split on Precinct’s approach. Three daughters of legendary hotelier PV Doyle are believed to be against the proposed takeover and could prevent Precinct obtaining outright control if the deal is put to shareholders. It has also been speculated businessmen Derek Quinlan and Paddy Kelly are considering mounting bids for the company.