That was the year, that was

January

The new chairman of Bord Failte, Mark Mortell, says his aim is to find ways to extend the tourist season and achieve a 50 per cent increase in income. Bank of Ireland passes out Allied Irish Bank to become the largest financial institution on the Irish Stock Exchange. The gap between the two banks had been narrowing for months.

The majority of CityJet's creditors agree to write off £6 million of money they are owed by the airline. Dixons, the British electronics giant, buy the Harry Moore chain.

The Examiner newspaper group pulls out of Radio Ireland, blaming policy differences with the Independent Radio and Television and Commission. The group intended to take a 15 per cent stake in the troubled radio station.

Bell Lines, says strong competition from the Channel Tunnel, will mean a major financial restructuring will be necessary, involving shareholders and creditors.

A £840 million bid by Allied Irish Banks for Dauphin Deposit Corporation in Pennsylvania is the biggest acquisition ever made by an Irish company. The acquisition is made through the bank's United States subsidiary, First Maryland. The acquisition drives AIB shares in Dublin and London to new highs.

Jefferson Smurfit Corporation records a drop in pre-tax profits from $106 million to $25 million dollars. The decline is attributed to dropping prices in corrugated containers, containerboard grades and newsprint.

Irish-American businessman, Chuck Feeney, "gives away" $600 million through his Atlantic Foundation, using a small office in Baggot Street. The money is routed through a company called Tara Consultants, and among the beneficiaries are several Irish universities, charities and projects in South Africa, eastern Europe and Russia.

February

Irish Life suspends 100 employees in a dispute over new sales structures and practices. A statement from the company says suspending staff is the last thing they wanted to do.

The property company, Treasury Holdings, buys a British investment property worth almost £62.5 million sterling in a joint venture with British company, EX Lands Properties.

Iona Technologies announces it is to float on the NASDAQ market in New York. The longest running legal action in the history of the State, between Bula and Tara Mines comes to an end, with the directors of Bula criticised for taking the case in the first place. Mr Justice Lynch throws out the claims of Bula directors that Tara and the Minister for Energy were responsible for not bringing a disputed mine in Co Meath into production.

US-based electronics multinational, Compaq, announces it is setting up a call centre in Dublin, creating 550 jobs within three years.

Bord Gais targets 50,000 homes as part of £26 million extension to its network. With "net saver" the company plans to extend its network, offering free connections and announcing a standard rate price freeze until the year 2000.

In a surprise move, the IDA withdraws a letter to a Dail committee considering a new law proposing a 48-hour week. The letter had warned of problems the 48hour week would create, particularly for Irish-based multinationals.

Later some politicians say the letter was withdrawn because of political pressure, although the IDA said it was simply sent "in error".

The Government later amends the 48-hour week bill and sets up a mechanism to monitor its initial impact.

The National Lottery says the "chime in the slime" millennium clock has been taken out of the River Liffey and put into storage in a Dublin warehouse for the foreseeable future. The clock did not function properly, explained the director of the National Lottery, Ray Bates, because of the pollution in the river.

March

The Minister for Enterprise and Employment, Mr Richard Bruton, says industry which locates outside major urban centres will benefit from higher grants "appropriate to each individual case". Strong growth in Ireland and north America together with acquisitions, push CRH's pre-tax profits up by 20.5 per cent to £193.4 million. The company's chief executive, Don Godson, says despite the pressures of EMU, further advances can be expected in 1998.

A group of unemployed people announce they intend to march on the headquarters of ISME, after the organisation calls some unemployed people, FAS course "junkies" and "social misfits". It is announced that Dr Tony O'Reilly will step down as chief executive of Heinz corporation when a major restructuring programme is well advanced. The Irish Auctioneers and Valuers Institute blames imprudent lenders for high house prices. However, the claim is strongly rejected by all the major lending institutions.

The Minister for Transport, Energy and Communications, Mr Dukes, asks Aer Lingus to submit a plan on how it might enter a strategic alliance. Mr Dukes says the example of Telecom Eireann and KPN/Telia could be one examined by the Aer Lingus board.

Esat Digifone, the new mobile phone operator, unveils the details of its tariffs and charges, claiming they are cheaper than their competitor Eircell. The company ups the ante on commissions which operators pay to retailers who sell the phones. It will pay retailers £125, compared to the £100 which Eircell pays.

Tesco announces the purchase of the Quinnsworth and Crazy Prices chain of supermarkets for approximately £600 million. The owners of the supermarkets, Associated British Foods, decide to sell because retailing is no longer its core business and it believes that only large international retail organisations can be profitable. It is announced that the 150,000 Irish policyholders with Norwich Union are to share up to £170 million worth of free shares when the life assurance company converts to a publicly quoted company.

Ryanair gears up for a stock market float. Ryanair has been seen as a candidate for the stock market ever since the US airline investor Mr David Bonderman took a shareholding.

April

Telecom Eireann launches a £15 million competition to provide free access to computers, the Internet and telephone voice mail for the inhabitants of one town.

A war of words breaks out between both sides in the long-running Irish life dispute as suspended staff ask for payment for the eight weeks they have been out of work. The company's management describe the request as ludicrous.

Operating profits on its core airline transport business fall at Aer Lingus, despite a rise in turnover. The airline's chief executive, Mr Gary McGann, says the drop in transport business is a "warning sign that needs to be addressed".

A team of leading international consultants are to investigate Telecom Eireann's shareholding in Cablelink, in one of the first moves in an EU Commission investigation into the industry across Europe.

It is announced that Avonmore and Waterford Co-ops plan to merge in one of the biggest deals in the agri-food sector in Europe. In a surprise move the chairman and chief executive of Bula Resources, Mr Jim Stanley, resigns to pursue "other mining interests". A small group of shareholders had been calling for Mr Stanley's resignation for some time. The Ryan Hotel Group reports a 45 per cent rise in pre-tax profits, with particular buoyancy in commercial and tourist business. Mr Conor McCarthy announces that he is stepping down as chief executive of the group, but will remain on as non-executive chairman.

May

An Post reports a sharp increase in profits, but its operating costs also rise significantly.

Ms Etain Doyle is appointed as Ireland's first telecommunications regulator to monitor a sector undergoing significant changes. Her office aims to ensure that regulation of the telecommunications sector should be transparent, objective, and independent from the Minister for Communication's role as the majority shareholder in Telecom Eireann.

It is revealed that Dr Tony Ryan and his family will raise between £34 million and £41 million through Ryanair's flotation. The family's remaining stake in Ryanair will be worth between £92.7 million and £109.6 million. SIPTU criticises the level of bonuses awarded to directors, like chief executive, Mr Michael O'Leary.

Seagram of Canada, the world's second largest spirits company, says it will oppose the planned merger of Guinness and Grand Metropolitan by lodging complaints to competition authorities around the world. The merger proposal also means Guinness may have to sell off its shareholding in Cantrell and Cochrane.

Aer Rianta reports a 13 per cent rise in pre-tax profits, but says the threatened EU abolition of duty free sales poses a major commercial challenge. Almost 35,000 new customers and a surge in demand drives the ESB's profits beyond its own expectations for 1996. The semiState says it has entered talks with British Telecom about a telecommunications joint venture.

The Republic is ranked the 16th most competitive economy in the world by the World Economic Forum, putting it ahead of Germany and France, according to the 1997 Global Competitiveness Report. Singapore and Hong Kong remain the world's most competitive countries.

The hard disk manufacturer Seagate Technologies announces the creation of 1,000 jobs in Cork as part of a £400 to £500 million investment at its plant in Ringaskiddy. The project is later postponed.

Avonmore and Waterford Coops boards approve a proposal to merge and the campaign to convince Waterford farmers begins. The revised proposal was strongly recommended to Waterford farmers by Waterford Co-op chairman, Mr John Dowling.

Shares in Ryanair shoot up dramatically in Dublin and New York after pricing for the company's heavily oversubscribed offer is announced. At the Dublin closing price Ryanair is worth about £500 million, while shares soar up 120p in just a few hours.

June

The proposed rescue package for Bell Lines, the stricken shipping company dramatically collapses, just minutes before it is due to be considered by the High Court.

The ESB names, Mr Ken O'Hara, as its new chief executive. Mr O'Hara will take over from Mr Joe Moran later in the summer.

Dunloe House, the property company controlled by solicitor Noel Smyth, becomes subject to a proposed reverse takeover by Monarch Properties and Aviette. The enlarged group is expected to raise funds, possibly through a rights issue.

The biggest rush for shares in the history of the State takes place as Norwich Union shares are offered to policyholders at a reduced rate, a week before they are traded on the London stock exchange. For many of the investors this was the first time they ever purchased shares.

The British supermarket giant, Safeway, and its Irish partner, Fitzwilton, say they will spend over £250 million over the next five years to build a chain of 20 superstores, a move likely to further intensify competition in the Irish grocery market.

A confidential report from NCB stockbrokers says Aer Lingus is heading for serious financial difficulty unless major cost savings are agreed. The report says the primary problem is that the airline needs a high level of investment in fleet replacement in other areas, but is faced with low profit margins and high costs.

A major management re-organisation at Fruit of the Loom is discussed, with the possibility raised that chief executive, Mr Willie McCarter may step down.

The drive for a share of the Irish insurance market accelerates with the announcement of a £13 million takeover of insurer AMEV by Royal and Sun Alliance. The takeover puts the merged operation just short of second place in the general insurance market, with a share just under 15 per cent.

July

Tesco says it will sell its lifestyle sports shops in the Republic as part of a major restructuring programme. IDA Ireland representatives meet senior management at the Asahi plant in Co Mayo where the jobs of 320 people are under threat. There is growing concern about the future of the plant after the rejection by workers of new terms and conditions.

In the first of two special meetings, shareholders of Avonmore and Waterford Co-ops vote in favour of the merger. The "Yes" vote is 83.2 per cent, exceeding the required 75 per cent. Under the terms of the merger, shareholders of both Co-ops will receive £92 million worth of Coop shares, based on the current Avonmore share price.

Stentor, the Irish telecommunications company, raises £6 million sterling in a placing of new shares and is to seek an Irish share listing in September. Mr Jim Stanley resigns as chairman of the exploration company, Ovoca Resources, just three months after stepping down from Bula Resources. A short statement from the company says Mr Stanley resigned for "health reasons".

The second and final special meeting of Avonmore Waterford shareholders gives a resounding endorsement of the merger proposal. The new company is expected to start targeting acquisitions in the US and Britain within 18 months. The combined business will have a turnover of some £2.5 billion, analysts say.

The Government decides to reinvite tenders for a national conference centre, reversing an earlier decision approving an application from the RDS. There are worries that the project cannot be completed within the time frame stipulated by the EU.

The Tanaiste and Minister for Enterprise, Trade and Employment, Ms Harney demands further information on the proposed acquisition of United Beverages Holdings by Guinness Ireland. Upon receiving the information Ms Harney says she will then decide whether to refer the acquisition to the Competition Authority.

August

The State's first ever shopping centre at Stillorgan is the subject of a major proposed development by owners Treasury Holdings, the property company controlled by Mr Johnny Ronan and Mr Richard Barrett. Their planning application involves over 200,000 square feet of new green space and over 1,200 new car parking spaces.

Dunnes Stores appoints Mr Diarmuid Ryan as its first ever personnel director, as part of what the company calls "its changing face". Among Mr Ryan's responsibilities will be handling the company's industrial relations. The appointment also means that, for the first time, the Dunne family are in a minority on the board.

Angry shareholders at the annual general meeting of Bula Resources call for the Garda Fraud Squad to be called in to investigate why the company lost £10 million in Russia.

The American parent of Donegal textiles company, Fruit of the Loom, decides to remove Mr Willie McCarter as managing director in a shock move. The reason behind the decision seems to be a festering dispute which began in January 1996 when some of Mr McCarter's responsibilities were transferred back to the United States. It turns out later that Mr McCarter's brother, Andy, is to take over the running of the Irish operation. The company seeks to reassure its almost 3,500 workers that their jobs are safe.

International Investment & Underwriting, the company controlled by financier Mr Dermot Desmond, sells a 10 per cent stake in mobile phone company, Esat Digifone. The stake was sold in April, but is only made public in August by the chairman of Esat Telecom, Mr Denis O'Brien.

Some 500 jobs are to be created in Ovens, Co Cork at the EMC Coporation plant where information storage systems are manufactured. Irish Permanent continues to benefit from a bouyant housing market, making a pre-tax profit of almost £26 million in the first six months of the year.

Tesco Ireland announces the appointment of a new senior management team to develop its 76 Quinnsworth/Crazy Prices and Bloomfields stores in the Republic.

The Campbell Bewley group makes its first move into the US coffee market, acquiring a Bostonbased cafe company, Rebecca's Cafe.

September

The ESB is temporarily left without a chief executive, after the board finds itself in dispute with the Government over his remuneration package. The Government insists that Mr O'Hara's salary must be in line with the Gleeson guidelines.

Mr John Teeling's company, Cooley Distillery, says it intends to seek a stock exchange listing within the next few months, when profit levels grow even further.

Jefferson Smurfit Group's shares move ahead despite the announcement of a 51 per cent fall in pre-tax profits. The shares recover strongly after optimistic comments on the outlook for the paper and packaging sector from chairman, Dr Michael Smurfit.

Powerscreen, the Dungannon-based engineering company, decides to purchase Moffett Engineering for £25 million. The sale of almost 74 million shares in oil and gas exploration company Bula is frozen by the High Court. The action by the High Court is taken after a dispute about who is the beneficial owner of the shares.

The ESB board backs down, faced with a direct instruction from the Minister for Public Enterprise, Mrs O'Rourke to reduce the proposed pay packet of its new chief executive, Mr Ken O'Hara. A terse statement from the company says Mr O'Hara has been appointed and his renumeration package does not contravene the Gleeson guidelines.

A new national Sunday newspaper is launched - Ireland on Sunday - and promises to take readers from its main rival, the Sunday Independent. The new paper invests £4 million in its development, much of it raised by accountant Mr Pascal Taggart.

Fashion designer, Mr Paul Costelloe, sells his design business to an international silk supplying company for about £1.2 million.

Woodchester Investments is subject to a takeover worth £591 million by GE Capital, making it one of the largest takeovers yet of an Irish public company.

The Institute of Chartered Accountants in Ireland (ICAI) appoints retired Supreme Court judge, Mr Justice John Blayney, to enquire into any professional or business misconduct by accountants named in the McCracken Tribunal report.

Marlborough Recruitment announces that it is to list on the London and Dublin stock exchanges in an attempt to raise £10 million of capital. The decision means that managing director, Mr Dave McKenna is worth £14 million. He bought the company for £6,000 at a liquidation sale in 1992.

October

Worldcom, the world's largest communications company, tables the largest bid in the history of mergers and acquisitions, when it offers to pay $30 billion (£20.6 billion) for MCI communications.

Dunnes Stores plans to open 25 stores in Britain and employ 1,500 people over the next five years as part of a new expansion plan.

The level of seasonally adjusted unemployment approaches a quarter of a million for the first time six years, according to figures from the Central Statistics Office.

Cuisine de France, the Dublin bakery company, is acquired by the IAWS group in a deal worth £51 million over five years. The two main shareholders, Mr Ronan McNamee and Mr Pat Loughrey, are to receive close to £20 million each from the deal.

The US company, Seagate, postpones a 1,000 jobs project at Cork for at least six months. The £148 million IDA-backed investment project at Ringaskiddy was to involve the production of hard disks used within computer disk drives.

The main shareholders in the Irish telecommunications company, TCL Telecom, reap a multimillion reward for the purchase of their company, by WorldCom. Assuming a value of more than £20 million for the company, Mr Sean Melly, Mr Bernard Somers and Mr Liam Booth, between them receive over £40 million for their stakes.

Esat Telecom confirms it is to seek a listing on the Nasdaq through an offering which will raise $78 million (£53 million) after sale of 30 per cent of the company.

Bank of Ireland becomes the unchallenged number two in the Irish life assurance and pensions market as its £273.6 million takover of New Ireland Assurance is completed. New Ireland managing director, Mr Jack Casey, stands to receive £1.6 million as a result of the takeover.

KPMG and Ernst & Young announce that they plan a merger which will create the world's biggest accountancy firm. The merger will also ensure KPMG stays at its top position in the Irish accountancy market.

Shares plunge on the New York stock market in heavy trading as investors on Wall Street respond to the extraordinary 10 per cent collapse in share prices in Hong Kong. European markets also recorded heavy losses in a day of nervous trading. Hong Kong's financial markets were in turmoil and the stock market suffered steep losses for the fourth day running.

November

The television consortium, TV3, signs a contract with the Independent Radio and Television Commission and pledges to be on air by next September.

Aer Lingus opens discussions with three potential partners interested in taking a stake in Team Aer Lingus, the airline's subsidiary. SIPTU warns that existing agreements must be honoured.

Dunloe House, the property company controlled by solicitor, Mr Noel Smyth, gears up for a takeover bid for Ewart.

Irish Press shareholders fail to move a resolution to have the company wound up at an angry annual general meeting. Dissident shareholders also unsuccessfully opposed the re-election of chairman, Mr Vincent Jennings.

Bank of Ireland surprises the market with a strong 30 per cent rise in pre-tax profits to £250.7 million in the six months to end of September. The results send brokers off to revise their full-year forecasts, predicting the bank could make up to £520 million in 1997.

Aer Rianta International pays £35 million for a 50 per cent share of Dusseldorf airport. The deal represents the biggest single investment by the State airport operator to date.

Dr Edmund Farrell settles his court action with the Irish Permanent and the building society settles its action with him. In a complex deal, Dr Farrell gets ownership of his Foxrock home which is valued at £2 million and a pension, but he has to make cash payments of £150,000 to the Irish Permanent. A separate action by the Irish Permanent against financial adviser, Mr Kelvin Smythe is settled, although the terms are not read out in court.

A director of Dunnes Stores, Mrs Margaret Heffernan, wins an appeal against a High Court decision removing her as executrix of the will of her late sister, Ms Therese Dunne, who died in 1995.

Eireann says it will cut phone call costs by over £200 million in the next three years with further major savings to be targeted at inland calls.

December

Dr Tony O'Reilly announces he is to retire as chief executive of HJ Heinz in April of 1998. He will remain on as non-executive chairman until at least September 2000. He is to be succeeded by Mr William Johnson, widely seen as front-runner for the post following his appointment as president and chief operating officer.

The telecommunications regulator, Ms Etain Doyle, launches a competition for the third mobile phone licence, which will cost the eventual winner £10 million.

The Avonmore Waterford Group establishes two enterprise funds costing £7.5 million to help communities affected by the company's rationalisation programme, which will involve 750 redundancies.

The Minister for Finance, Mr McCreevy, unveils his budget, including £517 of tax cuts aimed at middle and high income earners. His decision to give the GAA £20 million for the development of Croke Park draws criticism, although Mr McCreevy defends the decision on the basis that the GAA had its "plans on the table".

The Dublin financial market receives the budget positively, with the value of Irish shares racing ahead by more than £1 billion. Much of this is caused by the 20 per cent cut in capital gains tax included in the budget.

Greencore announces it intends to buy back some of its own shares and is expected to announce an acquisition soon. There is speculation that Paul's Malt, a subsidiary of Harrison and Crosfield, is a target, at a possible cost of £60 million and £80 million.

The board of the ESB gives formal approval for a £50 million deal with British Telecom, which will use Telecom's considerable network countrywide to build its telecommunications infrastructure.

Union Bank of Switzerland and Swiss Bank Corporation announce a merger which will create the second biggest bank in the world. American hard disk manufacturer, Seagate, announces that its plant in Clonmel, Co Tipperary is closing with the loss of 1,400 jobs.