Unidare director doubles holding

Irish businessman and Unidare director Mr John McGuckian has spent more than £1.6 million (€2 million) to snap up 4.9 per cent of the company's shares on the stock market and take his stake in the engineering group to 8.99 per cent.

Mr McGuckian's purchase of 970,561 shares yesterday at a price of €2.15 (£1.69) per share follows hot on the heels of last week's move by financier Mr Dermot Desmond and venture capitalist Mr Pierce Casey to buy 18.55 per cent of the group.

The move by the two entrepreneurs triggered widespread market speculation about the future of the group, particularly the possibility that it might be taken into private ownership. However, the Unidare board indicated at the company's annual meeting on Wednesday that it was not in favour of going private but would rather grow the company by acquisition. Mr McGuckian's move has been seen by some in the market as an attempt to prevent Mr Desmond and Mr Casey taking their stake above 20 per cent, a position that would allow them to block any change of ownership in the company and give them a strong position of influence.

It is also Mr McGuckian's second recent foray into the market to buy Unidare shares. He spent over £935,000 buying a 4 per cent stake in the engineering company last month, a week after Mr Casey took his stake to 4.55 per cent.

At the same time a number of other directors, including the chairman, Mr Jack Hayes and chief executive, Mr Paul Duggan, also bought shares.

Unidare is also thought to be lining up a significant acquisition in the US, which would require debt funding. In addition to improving Unidare's image in the market, such a purchase would make it more difficult to take the company private, because it would increase its level of debt.

Unidare has had a chequered earnings history in recent years and the latest warning came this week when Mr Hayes said the first-half figures would be further behind last year's than the company had budgeted for. However, he held out hope of an improvement in the second half.

Unidare's shares closed at €2.30 (£1.81) yesterday, down 20 cents.