Financier Dermot Desmond has increased his stake in Golden Vale from 6.23 per cent to 8.3 per cent. Mr Desmond bought 3.35 million shares for about £3 million (€3.85 million), bringing his total to 13.2 million shares.

The announcement was made to the Irish Stock Exchange yesterday.

Mr Desmond made the purchases through his investment vehicle, International Investment and Underwriting, based in the IFSC.

Recently, Mr Desmond had 9.85 million shares, amounting to 6.23 per cent of the company.

Yesterday, Golden Vale's share price was unchanged at €1.15 (91p) following the news.

Mr Desmond previously held a similar stake in the dairy group and made a significant profit in February 1998, when he sold it off.

His interest in the company may result in renewed investor interest in the stock and similar food groups whose share prices have stagnated in recent months.

There has also been speculation on Unidare's future recently, following Mr Desmond's interest in the engineering group.

With his partner Mr Pierce Casey, he increased their combined stake from 18.5 per cent to 26.6 per cent earlier this year.