Doyles' stake may exceed 25%

Members of the Doyle family are believed to have been behind the purchase yesterday of a 3.6 per cent stake in the Jurys Doyle Hotel Group.

The family of the late hotelier PV Doyle already hold a combined 23 per cent shareholding and is thought to have spent nearly €42 million to acquire a further 2.3 million shares, at a price of €18.25 each.

The acquisition, which will have to be confirmed to the Irish Stock Exchange today, would lift the family's stake in Jurys above the critical 25 per cent level, giving them significant control over the future of the company.

A stake of this order would allow them to block special resolutions, including any moves to take the company private or dispose of large parts of it.

The deal was done by NCB Stockbrokers, prompting some speculation at first that property developer Seán Dunne, who owns 21 per cent of the company, was behind the purchase.

But market sources later said that the buyer was in fact related to the Doyle family. Up until now, the Doyles have not been able to buy shares in the market because three family members sit on the company's board. As directors of Jurys, they are restricted from buying and selling shares in what is known as "the closed period" in the run-up to the release of company results.

But the publication yesterday of the Jury's first-half results freed them to acquire shares.

The family's arrival in the market follows recent stake-building by property developers Seán Dunne and Liam Carroll, who own 21.3 per cent and 8.3 per cent respectively.

Whether the Doyles are seeking to strengthen their bargaining position in the battle for control of the company, or whether they are interested in acquiring control of it themselves, remains unclear.

Shares in Jurys closed at €18.35 last night, a gain of 35 cent or nearly 2 per cent on the day, despite the release of less than sparkling first-half results as investors' focus remained firmly on the takeover saga.