Desmond investment scuppers Barlo MBO

Dermot Desmond has increased his stake in the Barlo group to 19.1%, effectively scuppering a management buyout of the company.

His investment vehicle IIU bought 2.1m shares at 42c on Friday, according to the Irish Stock Exchange today.

The share price is 2c above the figure offered to shareholders by chief executive Tony Mullins who was leading the MBO, through investment vehicle Melgan.

This offer valued the radiators and plastics group at €70m.

It was planned to demerge Athlone Extrusions from the Group at a cost of €68m and use this money to pay off some of Barlo's €123m debt.

Melgan needs 50% plus 1% of the votes cast at this month's extraordinary general meeting.

The EGM is scheduled for March 24.