Rebel Dunloe shareholders defeat Cherrywood proposal

Rebel shareholders yesterday defeated plans by Dunloe Ewart to buy British Land's 50 per cent share of their joint venture in the 412-acre Cherrywood development in south Dublin.

The proposal, which would have seen Dunloe Ewart pay the British group €63.85 million, was defeated by around 162 million votes to 122 million at an extraordinary general meeting. Shareholders holding around 104 million shares failed to vote.

The latest blow to executive chairman Mr Noel Smyth's plans to restructure the property development group came hours after Mr Liam Carroll, the group's largest shareholder, won a High Court battle to regain voting rights on his stake in the company.

Representatives for Mr Carroll, who runs Zoe Developments, were joined in voting down the resolution by the shares of developer Mr Phil Monahan, who has a 7 per cent stake in Dunloe and the financier Mr Dermot Desmond, who holds about 2 per cent of the company.

Mr Carroll owns 28.5 per cent of the company but had been barred from exercising his voting rights after it emerged that he had not informed the company about his ownership of more than four million shares, about 1.2 per cent of the group.

The High Court yesterday restored his rights over the 110.5 million shares but said the voting rights in relation to the four million shares at the centre of the affair would not be restored until after the e.g.m.

The meeting was delayed for two hours pending the court ruling.

British Land had indicated at the end of August its desire to exit the joint venture because the two parties had "different medium-term objectives".

It is understood not to have been informed by Dunloe of plans to swap part of the Cherrywood mixed-use site for Mr Carroll's shares in the group. Mr Carroll has been at odds with Dunloe management since he acquired his shares more than two years ago.

In court, Mr Bill Shipsey SC, counsel for Mr Carroll, said his client had "fallen on his sword" and had now, in accordance with legislation, notified the company, the Irish Stock Exchange and the Takeover Panel of his extra holding.

Mr Carroll told the court that while he was experienced in property development his knowledge of the regulatory requirements for listed companies was extremely limited.

Last night, a spokesman for Dunloe said the company would now review its position. The company's board met briefly after the meeting but made no further statement. British Land said it was "totally relaxed" about the outcome of the meeting.