Quinn confirms market speculation with Barlo bid

Sean Quinn has launched a takeover offer of 48c per share for MBO target Barlo, valuing the plastic and radiator company at €84m.

The current MBO group, Melgan, is headed by Barlo chief executive Tony Mullins and is just 40c a share, 20% lower than the Quinn offer.

A statement from Sarcon to the Irish stock exchange said it intended to seek a recommendation for the offer from Barlo's independent directors in the coming days.

The move came following speculation from the market after Quinn bought 25.6m shares in Barlo from Dermot Desmond's finance vehicle IIU Nominees. Desmond's share is now 4.43% from 19% and Quinn's has rocketed from 2.4% to 17% following the estimated €12.3m sale on 19 March.

Sarcon is a subsidiary of the Quinn Group, a private company with operations in cement and glass manufacturing, general insurance, hotels and property.