ICG share price hike may spark counter bid

ICG’s (Irish Continental Group) share price gained further yesterday raising the prospects of a counter bid to the €470 million management buyout (MBO) offer made nearly two weeks ago.

Eamonn Rothwell, chief executive and the other four top executives will formally publish details of the offer that values the shares at €18.50 each.

Shares in the group however, were trading at €19.85 by mid-afternoon yesterday, having hit €19.95 earlier, up 35 cents at that stage in the day.

Since the bid was tabled for ICG, which owns Irish Ferries, the shares have traded well above the offer figure of €18.50 raising the spectre of counter bid.

The possibility of such a move gripped the market late Friday afternoon when One51, headed by Philip Lynch, paid out of €25m for 5.6% of the equity at prices between €19.33 and €19.50 a share.

The significance of the share purchase is unclear and nobody knows if Mr Lynch will be part of an alternative offer for ICG that may or may not emerge for the shipping group which owns Irish Ferries.

Market sources say it could be just a value play like the 26% stake he took in NTR, the original toll road operator.

That initial outlay of €120/130m is currently worth close to €400m.

However, neither he nor his spokesman are making any comment on this latest development.

At present, Mr Lynch and four hedge funds have enough equity between them to block the MBO if they wished.