Barlo being sold on the cheap, say shareholders

THE independent directors of Barlo Group faced the wrath of shareholders yesterday who said the company was being sold off on the cheap.

Around 50 people turned up for an extraordinary general meeting yesterday, which was quickly adjourned following a new bid for the company by the Cavan-based businessman Sean Quinn.

But while his offer for the plastics and radiator group was 20% ahead of one by Barlo's managing director Tony Mullins, shareholders said Mr Quinn was still getting the company "cheaply". One small shareholder, Tom Rice, told the two independent directors Niall Carroll and John Farrell that they "were creatures of Mr Mullins" and that the company was not being sold at a fair price. He questioned the independence of the advice they had received.

But Mr Carroll hit back at the rebel shareholder, who walked out of the EGM, saying the company had worked hard to get the bid price up and that at one stage last year Mr Mullins had only indicated an offer of 30c per share.

He added that Barlo's board had looked at many ways to increase shareholder value, including instructing a merchant bank to seek offers for all or part of the company from trade buyers but no responses had been received.

The EGM was called yesterday to approve two motions related to the proposed MBO. The meeting was adjourned as a higher offer has been made by Mr Quinn.

He holds 29% of the company's shares and looks certain to gain control of Barlo. The full details of the offer by Sarcon, a subsidiary of the Quinn Group, are expected to be published next week.

It is unlikely Mr Mullins will make a counterbid for the company he had led for the past 14 years.

Meanwhile, Dermot Desmond, who last week sold off most of his stake in the company, sold his remaining Barlo shares yesterday for €3.5 million. It is not known at this stage who the purchaser was.

Barlo shares closed down 1 cent at 47c yesterday.