Reports of US bid denied by Alphyra

Telecom firm Alphyra, which is the subject of a management buy-out proposal, last night denied reports that the US group First Data was poised to make a bid for the company.

A spokesman said there had been no talks with any other party about a possible takeover of the company. This means the management proposal is the only one to have emerged so far.

Alphyra's chief executive, Mr John Nagle, and its finance director, Mr John Williamson, lead a 10-member senior management team that is expected to make a formal bid for the company near the end of this week.

The firm's shares closed unchanged at €1.95 on Friday, but up from the €1.55 level traded before news of the buy-out proposal emerged last Wednesday.

Alphyra shares traded as high as €22 during the dotcom boom but fell to a low of €1.40 earlier this year. It is understood last Friday's closing price is at the higher end of the indicative range cited in the group's initial approach to the company's non-executive directors.

The Sunday Times said a First Data bid valued Alphyra at €3.25 per share, significantly higher than the price level mooted by the management team. It reported that €3.25 was above the level fund mangers would accept. With any bid requiring the support of Alphyra's investors, this was crucial.

But last night Mr Nagle said: "I read with surprise today's press comments regarding First Data Corporation and speculation that there have been negotiations with Alphyra with a view to a takeover for some months. I can confirm that no such negotiations have ever taken place and that the speculation is completely unfounded."

Attempts to contact a First Data spokesperson yesterday were not successful.

It remains unclear whether the price range proposed by the management team would be acceptable to the company's largest shareholder, Bank of Ireland Asset Management, which has a 24 per cent stake. Other major shareholders include Newton Investment and Prudential.

Alphyra, formerly ITG, floated in May 1997. The company operates payphones, but its main business is in electronic funds transfer and top-up credit for mobile phones.