Clondalkin Group shares soared yesterday, rising from €6.80 to €8.25, following an announcement that the management team may make a bid of around €9 per share for the company. The value of Clondalkin increased by €61 million (£48 million) as a result of the surge. The proposed bid values Clondalkin at €381 million (£300 million).

Adare Printing shares rose by 7 per cent to €6.70 as investors sought further similar management buyouts (MBOs). However, Adare said it had no such plans. Analysts said the Clondalkin MBO would focus attention on other small companies which have been accorded a low market rating.

Institutional shareholders, in general, view the suggested offer as reasonable, particularly when judged against the recent share price. However, some wonder if it adequately reflects Clondalkin's future earnings stream.