Kingspan has suspended its share buyback programme following a ruling from the Takeover Panel. The Cavan-based building materials group said the panel had ruled that Kingspan get approval from its shareholders, excluding the company's directors, for any further share buybacks.

The ruling reflects the large number of shares owned by the directors. Between them, they hold more than 30 per cent of the company's equity, with chairman and chief executive Mr Eugene Murtagh accounting for around 80 per cent of this stake.

However, the company's next annual meeting does not take place until next May. To convene an extraordinary meeting of shareholders to get the necessary approval would take some weeks, leaving Kingspan with little time to buy back stock before entering its closed period.

As a result, Kingspan has suspended the share buyback programme for the time being although the board may re-consider it at a later date, finance director Mr Dermot Mulvihill said.

Since September 11th, the company has bought back nearly four million of its own shares, at an average cost of €1.90 per share.Shares in the company closed 10 cents lower at €1.35 yesterday.