Carroll’s woes hit share values

THE financial woes of developer Liam Carroll have hit the share values of two publicly quoted Irish firms whose shares he may have to offload to meet his debts.

Greencore and Irish Continental saw their shares fall sharply following weekend reports that Carroll may be forced to sell his significant minority stakes in the two companies to meet some of his outstanding €131 million debt to ACC Bank.

Mr Carroll has substantial minority stakes in the companies, which he bought into for their property potential during the boom years.

ACC’s threats of insolvency proceedings, which could have put six of Mr Carroll’s companies out of business, have forced the developer to seek the protection of the High Court.

The move prevented the potential unravelling of his property empire, which owes €1.2 billion to eight banks.

In 2005, Carroll also bought a 7% holding in hotel chain Jurys Doyle, which he later sold back to the Doyle family.

And as the property market boomed Carroll paid €170m in 2006 to financier Dermot Desmond for his 21% plus stake in Greencore.

He built that stake to above 29%, attracted by the huge investment potential unleashed by Greencore after it closed its sugar plants in Mallow and Carlow, which released nearly 1,000 acres of high potential development land.

In 2006, he also got involved in the takeover battle for Irish Continental Group, put in play when management, led by Eamonn Rothwell, bid €18.50 a share to buy the car ferries company.

Carroll became kingmaker in that takeover battle, which had turned into a head to head between ICG management and One51 led by Philip Lynch.

The 33 acres of land held by ICG in Dublin Docks, which was Carroll’s prime target, had a potential value of well over €500m, based on the market values of the day.

Greencore fell yesterday by as much as 8.8% in early Dublin trading.

The stock fell as much as 10 cents to €1.04, but had recovered somewhat by close of trade to end the day down just over 7% at €1.06.

Irish Continental Group also fell by as much as 5% to €9.50 in early trading but ended the day virtually unchanged from its €10 a share opening price.