Management buyout of Barlo blocked

THE management buyout (MBO) of the plastics and radiator group Barlo was effectively blocked yesterday after it emerged that businessmen Sean Quinn and Dermot Desmond hold enough shares to block the takeover.

In a surprising twist to the long-running MBO, Mr Desmond yesterday sold 25.6 million shares to Mr Quinn, the owner of Quinn Cement and Quinn Direct insurance, at 48 cent per share. This is 8 cent higher than the offer for Barlo by chief executive Tony Mullins.

Mr Desmond retains a 4.55% stake in Barlo and, when combined with Mr Quinn's 17.03% shareholding, this is enough to stop Dr Mullins taking Barlo private as the offer must be accepted by 80% of all shareholders. Given the price Mr Quinn paid, there is no chance he will take the MBO price.