British bank backs Precinct’s Jurys bid

Kevin Smith, Reuters

The group, which made a provisional offer of E17.50 a share for Jurys, valuing the company at E1.1 billion, has won backing from British bank HBOS, industry sources told Reuters.

Precinct, headed by property developer Brian Cullen and backed by British billionaires Simon and David Reuben, abandoned its takeover efforts after Anglo Irish Bank cut off financial support last Thursday.

The Jurys board subsequently withdrew its support for the takeover proposal the fourth made by Precinct in recent months and terminated the due diligence process being carried out by the consortium.

Precinct faces a September 2 deadline set by regulators to either make a concrete bid for Jurys or walk away.

Bríd White, analyst at Merrion Stockbrokers, said: "They need an extension (to the deadline) before Friday because I don't think they can finish due diligence by then they've lost a few days.

"They need to move quickly."

She said Precinct might find it harder this time around to secure support for its offer after property developer Sean Dunne raised his stake in the company to 18.2 percent last week.

Dunne is now the biggest single shareholder in Jurys Doyle.

His stake, in combination with more than 30 percent held by two other shareholders hostile to the approach, represents a substantial potential blocking vote.

Dunne agreed in July to buy 4.85 acres of prime property in Dublin's prestigious Ballsbridge district from Jurys for E260 million, a deal shareholders are due to vote on at an extraordinary meeting next month.