IWP shares jump in anticipation of buyout bid

SHARES in IWP International shot up in the last two days in anticipation of a management buyout offer.

Finance director Bernard Byrne is understood to be heading the MBO bid.

It is also understood that Jim Murphy, former boss of Golden Vale, now owned by Kerry Group, had been lined up to succeed Joe Moran as chief executive of the group. Mr Moran, founder and chief executive said: “If someone comes in with a firm offer that’s a premium to the current share price, we will have to consider it.” The shares closed in Dublin yesterday at 31c.

IWP’s operations have hit difficult times and the shares are off nearly 80% over the past 12 months, making them vulnerable to a bid.

The IWP founder made it clear yesterday he has no desire to relinquish his links with the company.

But with such a senior director leading the MBO charge, the momentum may be too much.

Mr Byrne is highly regarded in Dublin financial circles. If however, an MBO does not materialise, Jim Murphy will succeed Mr Moran as chief executive. If the MBO goes ahead, Mr Moran would resign from the business and Mr Murphy’s planned appointment would not proceed. IWP confirmed that it has had an approach from managers within the group who are interested in making a bid for the business.

IWP confirmed in a statement it was in preliminary talks with unidentified members of management about a possible bid.

Shares of IWP surged 26% in the previous two days on speculation it was about to become a takeover target.