Mullins raises offer to buy Barlo

TONY MULLINS is to up his offer for the plastics and radiator manufacturing group Barlo to 40 cent per share.

A statement from the company last night said it was still in talks with Dr Mullins, who is chief executive of the company, about a management buyout.

The company has been in talks with Dr Mullins and his bidding vehicle Melgan for the past several months ever since he indicated he was looking to take the company private at a price of 30 cent per share.

Since then there has been criticism from Dublin stockbrokers who believe that 30 cent per share undervalues the company.

Goodbody Stockbrokers placed a net asset value per share of 68 cent on Barlo, while NCB Stockbrokers believe that an offer of 45-50 cent per share would seal the management buy-out.

In a statement, the board committee set up to review any offer said: “The committee and Melgan are in discussions with a view to having a firm intention to see an offer announcement issued by mid-January.”