Managers key to Inishtech, Crean accord

THE future structure of Inishtech's management is the issue preventing agreement on the terms under which James Crean will bid for the 28.8 per cent of the company it does not own.

In a statement issued last night the board of Inishtech said: "In talking to us about their intention to offer, Crean made it a condition that they be satisfied with the management arrangements. This is very sensible and we also need to be satisfied."

The board members of Inishtech have already indicated that they have no problem with the 550p per share bid proposed by Crean four weeks ago. However, the board said that it is not in position to recommend the offer until a number of issues have to be clarified. The most important of these is the companys management structure after the minority shareholders are bought out.

Crean is keen that the present management structure remain largely intact, as it intends to sell Inishtech once it has acquired 100 per cent control. Three senior Crean executives left to join Inishtech at the time the proposed bid was announced. Mr Brian Molloy, Mr Peter Wynne and Mr Philip Soden all left Crean to join Inishtech's "support services team".

A number of groups are understood to be interested in acquiring, the print and packaging company. The leading contender is reported to be fellow print and packaging group Clondalkin, while the British group Wace has also been suggested as a possible suitor.

A spokeswoman for Inishtech said the company was hopeful that the issue would be resolved shortly. It is understood that the "management arrangements" only became an issue after Crean had communicated the outline of its planned bid to the Inishtech board.

A special board meeting of the company convened in Gibraltar two weeks ago, but was adjourned after the board sought further clarification from James Crean. The senior management of Inishtech, most of whom are represented on the board, are understood to be reluctant to commit themselves to recommending the deal without knowing who will be the ultimate purchaser of Inishtech.

Six of the 11 strong Inishtech board are executives of its subsidiaries, including Mr William Browne, Mr William Bruce, Mr Nigel Douthwaite, Mr Andrew Staples and Mr James Smith. The chairman is Mr Tom Toner.