A company controlled by businessman Mr Sean Quinn has announced its intention to table a cash offer of 48 cent per share for radiator group Barlo.
The offer from Mr Quinn's company, Sarcon, is eight cent higher than the offer made by Dr Tony Mullins, chief executive of Barlo and director of Melgan, on the February 25th. The Quinn offer values the entire company at about €84 million.
Barlo was up 2.27 per cent, 45 cents, at close last night, valuing the company at €9 million more than the management buyout offer.
Speculation as to the intentions of the Quinn Group have been rife since the company purchased 25.6 million shares from Mr Dermot Desmond last week, bringing their stake in the company up 2.4 per cent to 17 per cent.
The MBO offer was dependent on 80 per cent of shareholders' support and now looks unlikely to succeed with Mr Desmond and Mr Quinn currently controlling 21 per cent of the radiator and plastics group and therefore requiring 75 per cent shareholder approval.
However last week Melgan announced that they already have 36 per cent of the shareholder's support.
The matter will be discussed at the e.g.m in the Shelbourne hotel tomorrow.
