Fyffes considers appeal as view remains unchanged

Fyffes reaction: Fyffes remains convinced that it made the right decision to take an insider trading case against DCC and Jim Flavin, despite yesterday's High Court decision.

The fruit firm will decide after Christmas whether to lodge an appeal against the decision.

Fyffes chairman Carl McCann said last night that the company was "a little bit disappointed". "But that's how it goes," he added.

He said the firm had got "half an answer" from Ms Justice Mary Laffoy's finding that Mr Flavin had dealt in Fyffes shares in relation to the February 2000 €106 million sale of a DCC stake in the company.

Mr McCann added, however, that he was "surprised and disappointed" at the High Court's decision that Mr Flavin had not been in possession of price-sensitive information at the time. This meant the deal was not unlawful, Ms Justice Laffoy concluded.

Mr McCann said Fyffes's view on the matter had not changed "one little bit" after the judgment. He also said shareholders should be "content" that the decision to bring the case had been taken for the right reasons.

"Our legal advice was categoric," he said. Fyffes will have 21 days to lodge an appeal after the High Court judgment is lodged in the second week of January.

"All I can say is that we'll take advice on that," said Mr McCann of an appeal. He said the judgment was very long and would require careful analysis.

When asked if the legal action and its result had inflicted damage on Fyffes, Mr McCann said the firm's logic and the basis for the action had been "clear and consistent".

"From our point of view, we've done the right thing all the way through," he said.

In a statement issued to the Stock Exchange, Fyffes pointed out that its board's decision to bring the action in January 2002 had been "unanimous". The company highlighted its "fiduciary responsibilities" to shareholders as a key foundation for the action.

If Fyffes does not table and win an appeal, the company could face a bill for all parties' legal costs of around the €20 million.

Shares in Fyffes closed four cent weaker at €2.29 last night.