Fyffes disputes description of Flavin meeting

It was "totally inaccurate" for DCC chief executive Mr Jim Flavin to describe as "celebratory" a meeting held on the evening of a controversial sale of Fyffes shares in February 2000, the High Court was told yesterday.

The meeting was between Mr David McCann, chief executive of Fyffes, his father, Mr Neil McCann, the then chairman of Fyffes, and Mr Flavin.

Fyffes claims the share sale on February 3rd 2000 and other sales on February 8th and 14th, for €106 million and yielding a profit of €85 million, was organised by DCC and Mr Flavin, and two DCC subsidiaries, in breach of "insider dealing" provisions of the Companies Act. The claims are denied.

Yesterday, in evidence to the court based on a statement made by him, Mr David McCann said Mr Flavin did not indicate or hint at any stage during the meeting on February 3rd 2000 at the Great Southern Hotel at Dublin Airport "that anybody other than himself had made or would make decisions in relation to the shareholding."

At no time was the name Lotus Green (a Dutch subsidiary of Fyffes which DCC claims was the owner of the shareholding) or the existence of any holding company or offshore company mentioned in any way, Mr McCann said.

He said the meeting was "very tense" and Mr Flavin appeared very nervous. Mr Flavin's conversation "had the style of a man concluding his business with Fyffes". "It would be totally inaccurate to describe it, as Jim Flavin has, as celebratory.

"It was absolutely clear to me that Jim Flavin was finished, he was gone," Mr McCann added.

Mr McCann said that earlier that day he had been told by Mr Neil McCann that Mr Flavin had phoned Mr Neil McCann to say he was selling his shares in Fyffes. Mr McCann said he and Mr Neil McCann agreed it would be important to meet Mr Flavin to find out what was going on and a meeting was arranged at the Great Southern Hotel that evening.

That afternoon, Mr McCann said he was told by other Fyffes executives that as Mr Flavin was clearly not seeking the permission of the Fyffes chairman to deal, the dealing was a matter for himself. Mr McCann said he concluded this was not an aspect of the matter which Fyffes had to further address.

When he got to the Great Southern Hotel that evening about 15 minutes before the meeting with Mr Flavin, Mr McCann said he believed a transaction had been completed for about half of the DCC shareholding in Fyffes. He had understood earlier in the day that the entire DCC shareholding was being sold.

Mr McCann said he suggested to Mr Neil McCann that, regardless of how they were feeling about the events earlier that day, it was likely that Mr Flavin would be very pleased and they should offer him their congratulations. "We decided to buy a bottle of champagne," he said.

Mr McCann said that when Mr Flavin arrived, they congratulated him "with good grace". He said Mr Flavin appeared very nervous and the meeting was very tense.

At no time during the conversation did Mr Flavin indicate or hint that anybody other than himself had made or would make decisions in relation to the shareholding, he said. At no time was Lotus Green mentioned.

Earlier, Mr McCann said he had received a phone call from Mr Fergus Redahan of Goodbody stockbrokers about 8 am on February 2nd. Mr Redahan had asked was Mr McCann aware of anything occurring in Fyffes shares and that there was a sense of some activity. Mr McCann said he was unaware of anything but would check it out.

He had phoned Fyffes brokers - Davy Stockbrokers - and asked Mr Ronan Godfrey whether anything was "cooking" in Fyffes shares. He said Mr Godfrey "hesitated briefly" and said he would call Mr McCann back. Mr Godfrey rang back later and said he was unaware of anything happening regarding the shares.

Having subsequently seen a transcript of a conversation between Mr Godfrey and Mr Flavin, Mr McCann said he assumed Mr Godfrey was under instructions not to disclose to Fyffes that the DCC shares were being actively marketed through Davys.

The case continues today.