Riverdeep up 76pc as chief considers MBO

Shares in educational software group Riverdeep shot up yesterday after chief executive and chairman Barry O'Callaghan said he may offer to buy the firm.

Shares in the under-pressure company finished 76pc higher at €1.32 in Dublin. However, the share price is still down almost 60pc in the year to date as questions over its management have dragged Riverdeep down.

Mr O'Callaghan's statement said he was in preliminary talks and would make a further announcement in due course.

Riverdeep delisted from New York's Nasdaq exchange last month after suffering several broker downgrades amid mounting concern about its management. It has been criticised for failing to communicate adequately with the market over its performance.

Analysts said any buyout was likely to be pitched at around €1.45 a share, valuing the company at more than €330m, nearly double its market capitalisation at the close of business last Friday.