Barlo stock surges 40% as MBO seems on the cards

Settlement Date: July 16th

Dominic Coyle

Trade was somewhat muted yesterday, with traders uncertain whether to lay the blame on summer absences or investors adopting a wait-and-see attitude ahead of US corporate data in the next two weeks.

"There are a host of major US companies reporting figures in the next fortnight and that will effectively determine the direction of the market going forward," said one. "Since March, the S&P 500 is ahead 24 per cent and this quarter's figures will determine whether the recovery continues or peters out. Whatever happens, it will not stay stationary."

In Dublin, the announcement that Barlo chief executive Dr Tony Mullins was considering a buyout at 30 cents a share saw the stock surge 40 per cent to 35 cents in heavy dealing, with more than 2.4 million shares changing hands. An MBO at Barlo has been on the cards for so long that the announcement was almost a relief.

Among the financials, Bank of Ireland bounced back from the €10 lows earlier in the week to trade up to a €10.40 close, 20 cents ahead on the day. AIB was just five cents stronger on €12.75 while Anglo Irish Bank finished seven cents stronger on €8 having traded as high as €8.10 earlier.

Elsewhere, there was interest in Fyffes, which finished four cents up on €1.50 in volume of 1.7 million. Other second-liners in demand were Kerry and Kingspan, which were each 12 cents stronger on the day, closing at €13.70 and €2.80 respectively.

Ryanair was 22 cents ahead on the back of heavy demand for its ADRs in the US. It finished at €5.95 and was up 5 per cent in the US as Irish markets closed.

There was also foreign-led demand for a smaller stock, Dragon Oil, which closed up eight cents on 38 cents.