Denis Desmond may raise stake in Mean Fiddler

Promoter Mr Denis Desmond is interested in increasing his stake in the troubled Mean Fiddler Music Group, and could move to buy it in the medium term.

The company, in which Mr Desmond holds a 24.3 per cent stake, dropped a planned share placing and takeover deal last week after the abrupt departure of its newly-appointed chief executive, Mr Dean James.

Sources close to the business yesterday told The Irish Times that Mr Desmond was likely to continue adding to his 24.3 per cent stake in the London-listed group, despite last week's upheaval.

Mr Desmond is the second largest shareholder in the company after Mr Vince Power. Through his Irish operation, MCD, he bought over 16 per cent of the company late last year.

It has been suggested since that he was interested in taking it over. Sources did not rule this out yesterday, but they indicated that he had no immediate plans to do this.

As a result of his intervention two weeks ago, the company reversed its decision to take over its digital partner, Media Internet Telecom (MIT), and place £5.6 million sterling (€8.12 million) worth of new shares with institutions.

Mr Power also backtracked on his planned departure from the company and a proposed €18 million sale of his 35 per cent holding. Last week, a spokesman indicated that he intended to stay with the company for the foreseeable future.

The sale of his shares was part of an overall disposal of his and Mr Harry Lambert's interests in the company. When it was announced two weeks ago, the company said that a number of financial institutions had agreed to buy the shares.

The Mean Fiddler board did not tell Mr Desmond of the plans to issue new shares and sell existing stock. A company spokesman told The Irish Times last week that stock exchange rules did not oblige it to seek shareholder approval for the proposals.

He argued that as the rest of its shareholders found out when the company informed the market, the board could not have made a special case for Mr Desmond and inform him exclusively of the plan.

Mr Power established Mean Fiddler in 1981. It now operates a number of live music venues, and owns the Reading music festival and 34 per cent of the Glastonbury music festival.