DCC chief feels vindicated

DCC reaction: The managing director of DCC, Jim Flavin, said he was "obviously pleased" by the High Court ruling in the insider dealing case.

"I feel that the ruling on price sensitivity is unambigious and clear," he said, referring to the key ruling by Ms Justice Mary Laffoy that the information he had at the time of the share deals had not been price-sensitive.

"This is terribly important for my reputation and that of DCC. There wasn't a scintilla of evidence in [ Fyffes] at the time that it thought the information was price-sensitive."

In fact, he said, the evidence had been to the contrary, and it is "all very important that the judge has said that".

Nothing arose in his mind at the time of the share sales to cause him to consider that the information he had was price-sensitive, he said.

He said the whole period of the court action had been "a very trying time for everyone in DCC and my wife and family, because of the uncertainty."

Referring to the trading figures which Fyffes had alleged were price-sensitive, he said: "I have always felt that the numbers weren't great, looked at baldly. But we succeeeded in court in getting across that there was nothing unusual in Fyffes about having a poor first quarter."

There was, he said, no evidence that the company thought otherwise.

He said there was an "incongruity" in the position adopted by Fyffes as it had not made any statement to the market or considered internally, at the time, whether the information was price sensitive.

Mr Flavin, who was a non-executive director in Fyffes at the time, said non-executive directors always look first to the executive directors of a company in relation to such matters. "All the experts say the company itself is the best guide in such matters."

In the Fyffes case, the executives had never said their expectations for the year had changed.

"We have always felt that this was most unfair to us," he said.

During the lengthy case Mr Flavin said his relations with Carl and David McCann, of Fyffes, provided "part of the explanation for the timing, manner and mode of prosecution of these proceedings", a point refuted by Carl McCann.

Yesterday Mr Flavin said he had "great relations throughout the 1980s with Neil McCann. Things changed in the 1990s as the sons took over".

He praised Ms Justice Laffoy for quickly revealing her finding that the information was not price-sensitive. "She got to it very fast. That was terrific, really." He said he had been fearful he would have to sit through half an hour or more of preamble.

He said that during the whole affair "I personally was never looking over my shoulder. I always felt convinced of our position". He said he would have been "astounded" if the judge had found against DCC.

He said he will "to to my grave" maintaining his position that the offers for the shares were not solicited and that he did not give any direction to Fergal O'Dwyer, concerning the share sales. Mr O'Dwyer, chief financial officer of DCC, was also a director of Lotus Green at the time. He said the judge had found that it was not the case that he had "procured the bids" for the shares. DCC had argued that Lotus Green dealt in the shares.

He said the finding that he had dealt and that he controlled the dealing was "irrelevent" given the finding that the information at issue was not price sensitive. "She found so strongly in relation to price sensitivity. We won the key issue. We won the case, that's it."

On the "technical thing of dealing she found that we did. We understand and respect that judgment." He said it was "a detail as far as we are concerned".

The DCC shareholding in Fyffes was transferred to Lotus Green as part of a tax structure. Mr Flavin said it was "the belief of the board, having read the judgment" that the ruling would not have tax consequences.

Asked if he had suffered reputational damage from the affair Mr Flavin said: "I have had 29 years with a terrific team building up DCC and I would like to think we can be very proud that we ran a very straightforward ship. We never expected something like this to emerge."

The charge of insider dealing was a very serious one. "But we have been cleared. Vindicated. I hope the reputation of DCC and my reputation are back to where they were when the case started."

Asked about the judge's comment on the "absurdity" of the DCC case in relation to Lotus Green having dealt, and not Mr Flavin, he said he respected the judgment of the judge, and "can't go running our case again".

He said DCC had accumulated an estimated €10 million in costs in relation to the case. While the matter of who would pay costs was sub judice, he said, "generally the loser pays the costs".