Barlo shares ‘worth more’

SHAREHOLDERS in plastics and radiator group Barlo should not feel compelled to accept management’s buy out offer, according to Merrion Stockbrokers who argue the price on offer undervalues the group.

"With strong cashflows continuing to reduce the financial risk in the group, we believe shareholders should not feel compelled to accept a 40c offer," Merrion said last night.

In a note to clients, Merrion analyst John Mattimoe said the recent restructuring and capital investment programme at the company suggest the shares could reach as high as 80 cents.