Brosnan to head €300m food fund
Former Kerry boss Denis Brosnan is the driving force behind the fund and will have a key role in picking target investments for the group.
The fund is with US financial giants JP Morgan and may total as much as €300m.
Mystery surrounds the intentions of the investors but it has been rumoured that Greencore could be a target for the group.
It has been speculated that Denis Brosnan could be put in as chairman of Greencore to protect the interests of financier Dermot Desmond, who has invested €100m of his own money in the group at this stage.
Mr Brosnan has been an adviser to Mr McManus and Mr Magnier, both of whom have a minority stake in British-based group Devero, which supplies food ingredients to the consumer end of the meat business.
Shares changed hands in Devero yesterday and it has been speculated that both men were the buyers.
Market sources suggest that the key players in the fund are Mr Magnier, Mr McManus and Mr Desmond, with Mr Brosnan, the former boss of the Kerry Group the inspiration behind its establishment.
He will also play a key role in deciding where to invest it remains to be seen if Greencore will become a target.
It has been rumoured in the markets that Kerry Group might bid for Greencore but that seems wide of the mark and Kerry Group has never indicated an interest in Greencore despite the rumours.
All four involved in the new consortium have a strong interest in Manchester United, with Mr Magnier and Mr McManus holding a 24% stake in the club, Mr Desmond 1.5%, and Mr Brosnan a passionate supporter.
They have never operated together in the food sector, but the latest reports put the three together in this new fund said to be worth €300m.
Well placed sources in the food industry say that the consortium is up and running and that Greencore and its current chairman Ned Sullivan may be one of the targets for the investors.
However Mr Sullivan is not due for re-election for a few years and that speculation looks improbable at this stage.
Whether they plan to join forces to bid for Greencore is not known. It could that Mr Desmond will see out his Greencore involvement independently of the consortium, but that is not clear either.
It is understood that Mr Desmond tried on a number of occasions to sell his stake in Greencore, which he has built up since 1999.
However, last week he decided in the end to up his stake to 22% when a Canadian pension fund decided to sell out its holding in the group, which owns Irish Sugar and Hazlewood, the biggest sandwich maker in Europe.
In an interview earlier this year Mr Brosnan said he was considering setting up a fund to invest in the food sector and that he was looking for backers to support him in that venture.
He refused to comment earlier this week when given the opportunity about the current fund and the plans he has for it.
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