Shareholders in Waterford Wedgwood have approved a waiver allowing chairman Sir Anthony O'Reilly and his brother-in-law, Mr Peter Goulandris, to raise their stake to more than 30 per cent without making an offer for the company.

The motion was one of four approved at an extraordinary meeting of the company yesterday, paving the way for a €100 million rights issue if the company proceeds with an offer for rival chinamaker Royal Doulton.

Sir Anthony and Mr Goulandris, who between them own 24.6 per cent of Waterford Wedgwood, have agreed to underwrite 70 per cent of any rights issue.

But doing so could push their stake in the company to as much as 57.6 per cent, forcing them to make an outright bid for the company.

The Irish Takeover Panel has already approved "a whitewash waiver", allowing the two men to take their stake above the critical 30 per cent without bidding for the company, subject to shareholder approval.

Nearly 94 per cent of votes cast yesterday approved the "whitewash", which will allow the proposed five-for-three rights issue, at a price of six cents a share, to go ahead if the company proceeds with an offer for Royal Doulton.

Chief executive Mr Redmond O'Donoghue said yesterday that the company was continuing to consider an offer for the British firm, in which it already holds a 21 per cent stake.

He noted that in a positive development, Britain's Office of Fair Trade had said any offer would not need to be investigated under UK competition law.

Shareholders also approved three other motions relating to a possible rights issue, including a resolution to increase the number of shares in issue, currently capped at two billion.