Carroll and Lynch-led consortium scuppers ICG's plans

PROPERTY DEVELOPER Liam Carroll and the Philip Lynch-led Moonduster consortium yesterday torpedoed four motions at Irish Continental Group's (ICG) annual meeting that would have allowed the ferry group to issue more shares and put in place a new share options scheme for executives.

The pair combined to defeat the motions by a factor of two to one with more than 13.4 million shares voted against the motions.

The surprise move came as the company informed shareholders that revenues in the first three months of 2008 fell by 0.5 per cent year-on-year to €76.6 million.

ICG said its passenger numbers declined by 7 per cent between the start of the year and April 27th, while the number of cars carried was down by about 10 per cent. Roll-on, roll-off freight volumes declined by about 2 per cent during the period.

"The overall economic environment remains challenging," ICG added.

ICG's share price was down 1.1 per cent in Dublin yesterday to €20.49.

ICG was the subject last year of a protracted takeover battle between Moonduster and a management-led consortium called Aella, which was headed by chief executive Eamonn Rothwell.

Mr Rothwell owns 16 per cent of the ferry operator, while Moonduster controls 25 per cent of the shares and Mr Carroll has 29.2 per cent. The takeover battle cost the company €10 million in expenses.

In a statement released to The Irish Times, Moonduster said it was "entirely reasonable" for it to vote against the resolutions as it "does not wish to see its shareholding diluted".

Moonduster, which comprises Lynch's One51 and the Cork-based Doyle shipping group, said it had not been consulted by ICG's board on the motions. "Moonduster would be willing to consider any particular proposals ICG has as regards issues of shares on their individual merits, but is not prepared to grant management a free hand in deciding whether Moonduster is to be diluted or not."

In relation to voting down the proposed executive share option plan, which was to replace a scheme dating from 1998, Moonduster said: "Senior management have been well rewarded under previous option plans (in addition to their generous remuneration packages) and the Moonduster consortium does not see a benefit to ICG in approving the new plan at this time."

ICG directors earned €2.9 million between them in 2007, up from €2 million the previous year. Mr Rothwell was paid €1.4 million, a 40 per cent rise on his 2006 package. This included a basic salary of €424,000 and "performance pay" of €953,000.

No comment was available yesterday from ICG.