Barlo shares rise 7% as Desmond ups stake

BARLO shares rose over 7% to 44 cents yesterday in response to financier Dermot Desmond bringing his stake in the plastics and radiator company above the 10% level.

Mr Desmond’s investment vehicle IIU told the stock exchange that Bottin, another Desmond company, bought over four million Barlo shares on Thursday, bringing his total spending on the company in recent days to over €3.5 million. His stake in the company is now valued at approximately €7.5 million.

Mr Desmond’s increasing interest in Barlo turned up the heat on chief executive Tony Mullins, whose management buyout team valued the business at 40c per share, or €70 million, when details of its takeover offer became public last week.