Dunne and Doyles in contact as Jurys war intensifies

The major shareholders in Jurys Doyle - the Doyle family and Sean Dunne - have had at least three meetings over the course of the week as the battle for control at the company intensifies.

It is thought that Mr Dunne, who is the largest individual shareholder in the company, has also been in contact with representatives of Simon Reuben, the London-based investor.

Mr Reuben is one of four parties who have expressed an interest in taking over Jurys Doyle. He was the equity backer for Precinct's approach until the consortium backed out of the process last week and is keen to proceed with a bid on his own.

The Beatty family, who control 7 per cent of Jurys, have also met interested parties including representatives of Mr Reuben. The family is proceeding independently of the Doyles and is open to selling out at the right price.

It is understood that Mr Reuben would post a bid with a 50.1 per cent acceptance rate if he could rely on the support of Mr Dunne, the Beattys and Liam Carroll, the wealthy developer who has an 8.3 per cent stake in Jurys.

The three Doyle sisters, who have shown no appetite for selling, are thought to be taking advice from Goldman Sachs in London about how to proceed in relation to their shareholding.

At least two private equity firms - Blackstone and Orion - are meanwhile understood to be circling the firm with a view to buying the Jurys Inns business. Sources say an international hotel group has also laid the groundwork for an approach.

The Doyle family's chief negotiator is John Gallagher, the independently-wealthy husband of Jurys director, Bernie Gallagher.

The sisters raised their holding to 29.9 per cent over the past few days. This is the highest level they can reach without being forced to make an outright bid for the company.

The family continued to buy shares after the meetings with Mr Dunne began, suggesting they have limited confidence in reaching an accommodation with him. Mr Dunne has meanwhile built his position up to 21.998 per cent, with his most recent purchase, of 50,000 shares coming through contracts for difference, a type of leveraged instrument.

While the sisters have paid up to €18.50 for their shares over the past week, the vast bulk of their holding was acquired when Jurys took over the Doyle group in 1999. They are thus the least exposed of the parties that have been buying stock in recent weeks because they do not require an imminent financial return.

In contrast, Mr Dunne is said to have borrowed substantially to fund his purchases and will thus be under more pressure to deliver a return over the short term. He is thought to have considerably more interest in gaining control of Jurys property than in taking over the company.

His deal to buy 4.84 acres in Ballsbridge from Jurys will be considered by shareholders at an extraordinary general meeting later this month.

Mr Carroll has so far not declared his intentions, but he has at this stage stopped buying shares in the group.

Shares in Jurys fell 20 cent to €17.95 yesterday.