Merrion executives to quit in shake-up

STOCKBROKER Merrion Capital has announced three of its top executives are to leave the company in a significant shake-up at the group, previously owned by collapsed Icelandic bank, Landsbanki.

Michael Hodson, Enrique Curran and Adrian O’Carroll, significant shareholders in the company, are to leave the business. Following their departure Merrion will restructure its shareholder base through a commercial share offer.

In a statement last night it said the group continued to trade profitably, and it would be led by John Conroy as chief executive and Shane Nolan.

It was confirmed also that US company Allen & Co will continue as a leading shareholder in the slimmed down group with an estimated stake of 15%.

Merrion, which employs 80 staff, is expected to cut jobs by between 10 and 20 in the months ahead.

Merrion made pre-tax profits in 2007 of €25.5 million. In 2008 profits collapsed to €8m and are thought to have dipped to around €6m last year.

That year Merrion’s management team agreed to buy all the shares previously held by Landsbanki.

Reports suggested Merrion’s management paid close €30m for Landsbanki’s 84% stake in the business.

This represented a steep discount on the €90m the Icelandic group has paid since 2005 to acquire shares from Merrion’s founders and other equity holders.

The company is worth an estimated €35m and the departing executives are due their fair share of that.