Two bid offers emerge for IFI

The shareholders in Irish Fertilizer Industries - the Government and ICI - are to meet within days to discuss how to proceed, following the receipt to two bids for the company by last Friday's closing date.

One bid came from Grand Portage, a company in which Mr Declan Ganley's company, Ganley International and a Canadian company in which he has a stake, have interests. The second is understood to have been from the Irish publicly-quoted company IAWS, in conjunction with one of the big international names in the fertiliser industry - either Kemira, the Finnish chemicals group, or Norsk Hyrdo of Norway.

A third possible bidder is understood to have shown an interest up to a late stage, but not to have lodged a final bid.

The two shareholders are likely to take a different approach to the sale. The Government holds 51 per cent of the equity and is likely to be concerned about keeping as many jobs as possible after the sale and in the proposals being put by the bidders for the future of the firm. IFI employs 630 people in Cork, Arklow and Belfast. ICI which owns the remaining 49 per cent, on the other hand, is likely to want to sell to the highest bidder.

Due to the cyclical downturn in the fertiliser market, IFI recorded losses £10.6 million (€13.6 million). Industry sources believe that the acquisition cost could be £30 million to £40 million.