SHARES in agri-business group Golden Vale may be in for a sharp fall when they next trade, following a public statement by Minister for Agriculture, Mr Yates that the Charleville, Co Cork based group has been investigated for alleged irregularities in the EU milk quota system.

Golden Vale shares fell 3p to 62p in thin trading, but they were well offered at that level as the market closed, with brokers reporting a bid level for the shares as low as 55p.

A spokesman for Golden Vale declined to comment but said that a statement would be issued when the company has studied the Minister's comments in detail.

Yesterday, Mr Yates said that two companies, Golden Vale and Kerry, had been investigated by his Department in relation to the alleged irregularities, although the Minister added that Kerry's case was relatively minor and did not involve any breach of European rules on milk quotas. Mr Yates said that the investigation into Golden Vale is nearing completion.

In the Dail, the Minister did not refer specifically to either Kerry or Golden Vale but said that the irregularities related to over quota milk and super levy payments.

Golden Vale confirmed last night that it had paid £3.1 million because of underpayments of the levy over two years. The payment, including interest, was made recently following the Department of Agriculture audit.

Sources said, however, that any super levy payment by Golden Valet would be recouped from the milk suppliers themselves. Golden Vale has about 8,000 milk suppliers.

If Golden Vale shares do fall as low as the bid price in the market, it would be the second time in the space of two years that the shares have fallen to this level. Two years ago, Golden Vale shares slumped to a low of 50p after the company shocked the market with a profits warning on the eve of Ireland's opening World Cup soccer match when most fund managers were absent from their desks.

At the bid price of 55p, Golden Vale has a market capitalisation of less than £90 million, less than half its record capitalisation off £208 million in early 1994 and well below its £130 million capitalisation when it reached a 1996 high of 80p.