Swiss speculate about IAWS bid for Hiestand

Current Account:The decision by New York-based hedge fund Focus Capital Investors to double its shareholding in Swiss baker Hiestand last week to more than 20 per cent has fuelled speculation that IAWS may make a bid for Hiestand.

IAWS and Focus Capital now own a combined 52 per cent in Hiestand, whose stock recently traded at an all-time high. Hiestand's market capitalisation is currently almost € 528 million, making IAWS's 32 per cent shareholding worth €169 million.

Rumours were rife in the Swiss market during the past few weeks that IAWS was preparing a bid for Hiestand, but sources say the Irish company does not intend to alter its position in the Swiss firm and is focused on the US, having spent € 350 million late last year to acquire US-based Otis Spunkmeyer. If anything, a sale is now more likely.

"It's been an astute investment and is generating dividends of roughly € 5 million per annum for IAWS. With the potential to unlock a significant amount of money from its property portfolio, I don't think IAWS is under pressure to make any decision on Hiestand at the moment," comments one source.

Virtual Horn more outspoken than original

Irish blogging has recently assumed a new level of credibility among the less cutting edge among us with the arrival on the scene of Iona Technology's Chris Horn. The understated Dr Horn is a widely respected voice in the Irish ICT sector. However, like many in the blogging world, his virtual self appears to have become somewhat more outspoken than the original.

He notes that most successful world-class entrepreneurs based in Ireland have succeeded "despite the challenges" - citing "the physical infrastructure, even the physical location of Ireland, the cost challenges and the frequently dysfunctional Civil Service".

Urging the State and its entrepreneurs to build upon the international regard for "Brand Ireland", he writes: "Without wishing to be geo-political, frankly I believe that certain other national brands are now extremely damaged in the global community, creating obstacles for their own entrepreneurs to undertake business and opening opportunities for others, such as the Irish" - a sentiment that will no doubt endear him to American friends.

And who would have imagined the studiously mannered Horn citing Ryanair's rumbustious and irreverent chief executive Michael O'Leary as "probably the most understanding CEO which Ireland has yet produced"? He even endorsed the opinion of fellow technology entrepreneur Peter Conlon of Xsil that O'Leary was a role model which Enterprise Ireland might adopt.

Current Account is not sure the Americans, or indeed the British, whose sensitivities O'Leary regularly ruffles, would agree.

Still, with nuggets like these, Current Account only hopes that other Irish executives follow Dr Horn's lead into the world of blogging.

Gallagher to strike gold

Nicholas Gallagher, the former director of Quinlan Private, plans to sell shares worth almost $3 million (€2.26 million) in a US gold company as the exploration firm seeks capital to fund its activities in Alaska.

Gallagher, who is also a past director of recently floated mobile technology firm Zamano, currently owns almost 10 per cent of Little Squaw Gold Mining, which is headquartered in Spokane, Washington. He owns 4.35 million shares in the company, and following the rights issue will see his stake diluted to 6.86 per cent of the firm. That holding is likely to be worth in the region of $2.7 million.

Gallagher, with an address at the K Club in Kildare, is currently a director of just one Irish-based vehicle, NGB Capital, which is beneficially owned by an entity in the British Virgin Islands. He was a director with Quinlan Private from 2000 until 2004.

Bloomberg's bloomer

The curse of Wikipedia or some other gremlin appears to have struck at Bloomberg this week.

In a piece on junk bonds, the wire service made passing reference to the refinancing of Digicel, which it describes as "a holding company of Irish billionaire and former Monty Python producer Denis O'Brien". And now for something completely different . . .