Doyles may scupper Dunne deal
The Doyle sisters - Bernie Gallagher, Eileen Monaghan and Ann Roche - own 29.9% of the chain but have yet to decide whether to back the deal, which requires shareholder approval at the end of the month.
It emerged yesterday that the majority of the Jurys board intend to back the sale of the five acres of land in Ballsbridge.
It had been thought the Doyles would agree to the sale, agreed by the board in June.
Walter Beatty, the former company chairman who owns 7.2% of shares, will vote in favour. Mr Beatty is a long-time confidant of the Doyle family.
In a letter to shareholders, Jurys chairman Richard Hooper urged investors to back the sale.
“The board believes the exit from the Ballsbridge Site will realise significant value for Jurys Doyle shareholders. The total amount to be received reflects the unique status of the Ballsbridge site and represents a value that the board considers to be highly attractive.”
Given the size of the Doyles’ stake it is possible they could block the deal as Mr Dunne - who owns around 25% of Jurys - is precluded from voting.
Approving the sale only requires a simple majority, so if turnout is low and the Doyles do not vote with the rest of the board, the deal could be scuppered.
According to one report yesterday the Doyle family did not want to see the business turned over to “asset strippers.”
The voting intentions of Liam Carroll, who has an 8.3% stake, are unclear.
Documents sent to shareholders show Jurys appears to be exiting the site at a good time. Its activities there, such as the Jurys Hotel and the Berkeley Court apartments, generated profits of €700,000 in the first six months of 2005, down from €2.7 million in 2004.
If the Doyles, whose father PV built many of the four and five-star hotels in the group, vote against the deal it will force them into a stand-off with Mr Dunne. Given they both own more than 25% of shares, either side could block a takeover attempt by the other.
It also emerged Mr Dunne has agreed not build a hotel on the site, which will be occupied by Jurys for another two years.
He is expected to seek planning permission for luxury apartments.
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