DCC stakeholder demands break-up

A US fund manager holding a stake in DCC has written to its management demanding measures to break up the Irish business services company, the Sunday Times newspaper reported.

ReachCapital, which has built a 1% stake in DCC on behalf of clients, said DCC shares were undervalued due to its “conglomerate” nature and the distraction caused by a share dealing case with fruit company Fyffes, the paper said.

The fund said it may explore “external alternatives” if the board does not take immediate steps to maximise shareholder value. The alternatives could include seeking support from other funds or soliciting buyers for the company’s assets.