Elan shares blackballed by brokers

ELAN shares have been given an "avoid" rating by Merrion Stockbrokers in the wake of the company's global conference call to investors yesterday when plans to raise €1 billion in an asset sell-off were unveiled.

News of the drive for cash came just hours after Elan chairman and chief executive Donal Geaney and his deputy Tom Lynch stepped down. And Elan’s problems mean the company is to abandon plans to create between 250 and 300 jobs in the former GSI electronics plant in Macroom, where 670 jobs were lost last year. Merrion analyst Peter Frawley said the company failed to lift concerns over 3 billion in debt due over the next two years.

“We are rating Elan shares ‘avoid’ and we are telling out clients not to buy in,” he said.