Extension to Alphyra offer likely

Rendina, the management buyout (MBO) group seeking to take control of Alphyra, is expected to extend its offer by two weeks after the initial closing date for acceptances passes today. The €80 million Rendina bid is likely to fall well short of the 80 per cent acceptance rate required for it to be declared unconditional. Market sources suggest that more than 30 per cent of the firm's shareholders have elected to delay a decision on the offer at this stage.

One shareholder, the New York-based Kaufmann Fund, has made public its intention to reject the MBO bid in respect of its 7 per cent holding, expressing concern about management hostility towards rival approaches.

It emerged yesterday that a number of shareholders have asked the Irish Takeover Panel to suspend the Rendina offer pending an investigation into management conduct.

Denver-based First Data withdrew a €90 million indicative bid for Alphyra last Friday, leaving Rendina as the sole bidder. Management had treated First Data's interest as "hostile and most unwelcome".

Alphyra closed at €2.35 last night, down five cents on the day, and 10 cents below Rendina's €2.45 offer. The Rendina vehicle is led by 10 members of Alphyra's management team, including chief executive Mr John Nagle.

The group is being backed by Benchmark Capital, with bridging finance made available by IIB Bank.The offer, recommended by Alphyra's independent directors, Mr Nick Koumarianos and Mr Grant Wilkinson, closes in the first instance this afternoon.