Regulator investigates Lynch share dealings

BUSINESSMAN PHILIP Lynch is at the centre of inquiries by the Financial Regulator into share dealings at listed drinks group C&C.

The inquiry into Mr Lynch’s transactions is believed to centre around two specific purchases of shares in the company in October 2008, a month before a new management team was announced at the company.

Mr Lynch, a non-executive director at C&C since 2004, substantially increased his shareholding in the company, buying 600,000 shares in C&C for more than €800,000 twice in October 2008.

C&C said yesterday that it was co-operating with the inquiry into director dealings at the company in the run-up to the appointment of the new management team in November 2008.

“As part of the inquiry, the group is bound by confidentiality and cannot comment,” the statement added. “Needless to say, the group has co-operated fully as it would do with any official inquiry.”

Attempts to contact Mr Lynch yesterday evening were unsuccessful.

Mr Lynch is chief executive of investment group One51. He is also co-chairman of Ireland First, a group of 17 prominent figures behind a document outlining proposals for Ireland's political and economic reform – A Blueprint for Ireland's Recovery.The investigation into Mr Lynch's dealings in CC shares began in early 2009, shortly after the current management team took over the mantle at the drinks company.

John Dunsmore, former chief executive of rival drinks company Scottish Newcastle, was named as the new chief executive of C&C, on November 10th, 2008, replacing Maurice Pratt, who had been at the helm since 2002.

Dunsmore’s Scottish Newcastle colleagues Stephen Glancey and Kenny Neison also joined CC at this time, taking up the position of chief operating officer and strategy director respectively.

The management appointments at C&C followed a very challenging couple of years for the drinks company, as sales of its cider brand Magners fell and its share price struggled. The investigation, which is ongoing for more than two years, is understood to be close to completion.