‘No point’ putting ICG bids to shareholders

THE independent directors of Irish Continental Group (ICG), which owns Irish Ferries, are refusing to put the two counter bids of €22 per share to shareholders, they said last night.

Unless the bidders come to some understanding on the bid the directors see no point in putting the offer to shareholders.

Both parties can block each other’s €561 million bid for the shipping group because they each hold more than 20% of the share capital.

On one side of the fight for control of ICG is Moonduster, which represents the interests of One 51 and the Doyle Group.

The other side is led by ICG’s chief executive Eamonn Rothwell and his management colleagues, who initiated a management buyout of the group in March with an offer of €18.50.

That was topped significantly by Moonduster when it offered €22 per share.

Within days Mr Rothwell and his colleagues matched the Moonduster offer and it has been stalemate for several weeks.

Moonduster claim theirs is still the only bid on the table and that it has been recommended to shareholders.

But the directors rejected that view last night.

Two competing equal bids for the group are in play, they have insisted. It was not in the interests of other shareholders to call an EGM to have it end in stalemate given the situation that exists, a spokesman for the directors said.

To help move the process forward both sides were requested by letter last week to meet face to face to see if a resolution to the impasse can be found.

One of the sides has indicated a willingness to talk, but it is believed the management team has not responded to the letter.

Last night the directors made it clear that unless both sides work together to find a way out of the dilemma its hands were tied.

However, a spokesman Moonduster said the only offer on the table was from his client, a claim rejected by the directors, who have refused to send out the offer documents, which were delivered to them last week.

When Moonduster made its offer of €22 a share analysts thought it was a knock-out offer.

But Mr Rothwell — who initially insisted that €18.50 represented full value for the group — matched the higher offer within days.

Moonduster is led by businessman Philip Lynch and two Doyle cousins from Cork who control the Doyle Group’s shipping operations.

Mr Lynch formed One51 out of the former IAWS Co-op and has been developing the group in the alternative energy and waste management sectors.

One 51 also controls 26% of the equity in NTR, which is also involved in waste management and alternative energy.

The Doyle Group is a long standing business recently listed 13th in Cork’s top 50 companies and engages in the leasing of ships and stevedoring.

Mr Rothwell founded ICG in 1988 and prior to that he was a leading corporate adviser with NCB Stockbrokers.