The Irish business world as viewed from the courtroom where the Fyffes/DCC insider dealing case is being heard bears little resemblance to the world described in business studies textbooks.

A public company issues a statement to the market that does not reflect underlying trading concerns. Potential investors receive briefings from a plc executive who has already drafted a profit warning that is to be issued a few days later.

A finance executive asks the chairman of a foreign subsidiary to call a board meeting and to write him a letter pretending that he, the chairman, thought of calling the meeting, (this done on the basis of tax advice). Yesterday, Jim Flavin, founder and chief executive of DCC, an industrial holdings group with a market capitalisation of €1.4 billion, told the court that the group sold a €106 million stake in Fyffes plc without entering into any negotiations on price.

For tax reasons, the group had delegated exclusive control over its stake in Fyffes to a Dutch subsidiary, Lotus Green.

The brokers in Dublin did not know this, so when in late January-early February, senior figures in Davy and Goodbody Stockbrokers were seeking to put together deals involving the stock held by DCC, they did so by contacting Mr Flavin.

A series of contacts took place in the period from, at least, January 27th to February 3rd, 2000.

On the afternoon of the latter date, a joint bid was made by the brokers to Mr Flavin. He responded by saying that he had no authority in the matter and that the broker would receive a call from Holland. A man from Holland whom the broker had never heard of then called and confirmed the deal.

The February 3rd deal was the first of three in February that led to DCC offloading most of its stock, with the two subsequent deals handled soley by Goodbody. Mr Flavin was contacted regarding all three deals. Each deal was confirmed by a director of Lotus Green in Holland.

Paul Gallagher SC for Fyffes, asked Mr Flavin if it was his eviddence that he did not negotiate the February 3rd deal?

"That is my belief, judge, yes," Mr Flavin responded. He also agreed that no one from Lotus Green negotiated in relation to the deal.

Mr Gallagher: "So the court is to take it, Mr Flavin, that it is DCC's case that this very substantial shareholding representing a very significant asset of the DCC group, was sold without anyone on behalf of the group or any company within the group, negotiating its sale?"

Mr Flavin: "Judge, generally speaking, to my knowledge, negotiations don't always go on in relation to some stock market transactions."

Mr Flavin said he would leave it to Lotus Green to express a view on the point made by Mr Gallagher. At the time of the trade, there was unprecedented interest in Fyffes shares and Lotus Green had made a decision to accept offers of €3 per share or more.

"As to why they took that particular approach, I think it is fair that I will leave them to answer that, judge."

Mr Flavin said that at the time he was having contacts with the Dublin brokers, he passed on the fact of the contacts to Fergal O'Dwyer, a DCC executive who was on the board of Lotus Green. He did not discuss with Mr O'Dwyer whether the offers that were suggested were ones that could be improved on. Lotus Green never asked Mr Flavin if he thought a better price could be achieved.

Mr Gallagher asked Mr Flavin if that was not strange? He said he did not think so. He said he was always careful to distance himself from Lotus Green's affairs.