Rothwell in talks with Moonduster over bid for ICG

IRISH CONTINENTAL Group (ICG) chief executive Eamonn Rothwell and the Philip Lynch-led Moonduster consortium look set to launch a joint bid to acquire the Irish ferry company, which has been the subject of a protracted takeover battle for more than 18 months.

In an unexpected development yesterday, Mr Rothwell and Moonduster issued a joint statement saying they "are engaged in discussions with a view to potentially bringing forward an offer" for ICG.

Moonduster and Mr Rothwell locked horns last year with rival bids for ICG, both of which failed.

No price was disclosed by the two parties. It is understood that Mr Rothwell and Moonduster have held discussions with a number of banks about funding. These are thought to include AIB, Bank of Ireland and Halifax-Bank of Scotland (Ireland).

"Discussions have commenced with potential funding providers," the statement said. "Notwithstanding the current funding environment, both Moonduster and Mr Rothwell are confident that the requisite funding will be arranged."

If the bid proves successful, it is believed that Mr Rothwell will continue to run the business.

It is understood that contact between the two parties was made last Thursday.

This followed an indication from Moonduster - which comprises Mr Lynch's One51 investment group and the Cork-based Doyle shipping company - almost six weeks ago that it would seek to engage with ICG's other large shareholders with a view to bringing forward an offer for the group.

Moonduster owns 25 per cent of ICG's shares with Mr Rothwell holding about 16 per cent.

ICG's other large shareholder is property developer Liam Carroll, who owns more than 29 per cent of the company. Mr Carroll has never bid for the ferry business.

It is understood that face-to-face meetings have taken place between Moonduster and Mr Carroll and his representatives recently but the property developer has yet to give an undertaking to the consortium.

No contact is thought to have been made between Mr Rothwell and Mr Carroll.

It is believed that Mr Carroll plans to wait for the details of the offer to be released before deciding if he will sell his stake.

Mr Carroll is also believed to be weighing the possibility of a rival offer. It is understood that contact has been made with a leading player in the shipping industry but there is no indication if this will lead to an offer for the group.

It is understood that representatives of ICG plan to meet advisers of Moonduster and Mr Rothwell in the coming days to discuss a possible offer.

The stock exchange announcement was released after the market in Dublin had closed yesterday. ICG's share price declined by 1 per cent to €14.40 in trading.

Any bid is expected to top €20 a share, given that two offers in excess of this amount were lodged and rejected last year.

It is not clear what effect yesterday's announcement will have on an inquiry into ICG share trading being conducted by the Irish Takeover Panel. It is looking into allegations of concert party trading last year between Moonduster and UK-based investment fund Arkaga. Moonduster has said these allegations are misleading.