Desmond may be buyer of €6m Dunloe shares

MILLIONAIRE financier Dermot Desmond is believed to be the buyer of a further 6 million of Dunloe shares yesterday.

The news eliminates any chance of chairman Noel Smyth getting a simple 51% majority for his 42.5 cent per share offer made last week for the group.

It also leaves 3,000 small shareholders bereft of the option of accepting the offer to get out of the group which has been locked in a Mexican stand-off with dissident shareholders for nearly two years.

As this latest purchase follows a three million deal put through on Tuesday it could mean the company is in for a protracted stalemate that serves nobody's interest in the long run.

This latest news is a further blow for the hopes of Mr Smyth who bid for the business in an effort to end the stand off between himself, Mr Carroll, Mr Desmond and Mr Phil Monahan.

In effect Mr Smyth has no chance of gaining a 51% equity stake in the business in order to permit him making an unconditional offer for the property group. If Liam Carroll was the buyer it would take him over the 29.9% shareholding level at which a full bid is mandatory.

However Dermot Desmond has built up an 8% stake and has bought shares in the company in the last few days, making him the most likely buyer, sources said.

Phil Monahan is the other major stakeholder with a 6.7% stake.

The only hope now of breaking the latest impasse is that one of the dissidents would make a counter bid, which the market thinks unlikely at this stage.

Mr Smyth mounted his bid in the hope of acquiring enough shares to allow him to declare the offer for the company unconditional.

But that chance has passed and ordinary punters look like they have no where to go at this stage.

Caught in the crossfire between Smyth and the dissidents they may find themselves stranded indefinitely.

Their only other option is to attempt to sell their shares on the market which is probably unrealistic in the present hostile climate.

Developments of the past few days have made it clear that chairman Noel Smyth, cannot reach the 51% acceptance for his bid for the group following the latest share purchases.

Dunloe's shares were unchanged again yesterday at 43 cents following the purchase of the latest tranche of the stock.

If Mr Desmond is the buyer then his stake in the company will have increased to almost 9.5%.

Mr Carroll is the biggest shareholder in the company with nearly 29.9% of the equity at this stage followed by Mr Smyth and his wife with over 26%.