Desmond ups stake in Barlo to 13%

FINANCIER Dermot Desmond has edged his shareholding in plastics and radiator group Barlo closer to the key 20% mark that would allow him to block the controversial management buyout (MBO) attempt led by chief executive Tony Mullins.

Mr Desmond's investment vehicle IIU told the stock exchange yesterday he had spent another €1.5 million on Barlo shares on Monday, giving him a 13% stake that is valued at almost €10m. Mr Desmond held approximately 5% of Barlo when details of the proposed MBO were announced earlier this month.

But Mr Desmond's decision to consistently build up his shareholding since then has fuelled speculation that Dr Mullins will be forced to increase his 40c per share offer that valued Barlo at €70m. Barlo shares have traded higher than 40c over the past week, following Mr Desmond's intervention, and closed yesterday at 41c.