Management buy out of Riverdeep criticised by investment houses

SOME Irish institutions from stockbrokers to investment houses have criticised the Riverdeep management buy out (MBO).

Allegations of lack of information from the company on future outlook and profit expectations have been rife among some Irish brokers.

Merrion Capital in particular have gone public in their sharp criticisms of the company and its inability to keep them fully informed on developments within the education software group Barry O’Callaghan, chief executive, Riverdeep, could not hide his annoyance when those allegations were put to him.

Reading between the lines it looks as if the big institutional investors got the information required to keep them on board while Irish brokers failed to get the same level of disclosure from the group.

Some brokers argue the share price fall was assisted by the “strident” views of chief executive, Barry O’Callaghan who retorts: “I can’t be held responsible for the way the markets have performed over the last three years.”