ICG directors to terminate takeover talks if no progress is made

Irish Continental Group's (ICG) independent directors said yesterday that they would terminate discussions with Moonduster and Aella at 5pm on August 17th if no "material development" has emerged in the protracted takeover saga.

The independent directors said they would also end the current offer period, a move which would preclude both Moonduster and Aella from making another bid for ICG for 12 months.

This follows its consultation with the Irish Takeover Panel after a failure of two previous deadlines to break the deadlock between Moonduster and Aella.

ICG has been in an offer period since March 8th when Aella, a management group led by the ferry company's chief executive, Eamonn Rothwell, tabled an €18.50-a-share offer.

This was trumped on June 14th by Moonduster, a consortium backed by Philip Lynch's One51 Capital and the Cork-based Doyle shipping group, which offered €22 per share for ICG. Moonduster has a 20.38 per cent stake in ICG.

On June 20th, Aella increased its shareholding to 19.14 per cent and raised its cash offer to €22 a share.

Moonduster and Aella have each indicated to the independent directors that they would not support the other's bid, leading to the present stalemate. Acceptance of either offer requires 75 per cent approval from shareholders.

Earlier this week Moonduster said it had informed the independent directors that it was "willing to participate in a competitive bid process" subject to Aella agreeing to enter such a process.

Meanwhlie, property developer Liam Carroll yesterday increased his stake in ICG. It is understood that he now controls close to 18 per cent of the ferry company's stock.

Carroll is believed to have paid just under €25 a share, buying stock from UK institutions. The property developer is expected to continue stake-building in ICG next week to take his holding to more than 20 per cent.

His interest in ICG is held as contracts for differences (CFDs) and he is not obliged to disclose his stake to the stock exchange.

ICG's shares closed at €24 in Dublin yesterday, a rise of 4.35 per cent.

Sources close to Moonduster said it continued to believe a competitive bidding process was the best way to end the stalemate.

Aella declined to comment.