Analysis: Details of Fyffes/DCC sales told to court, writes Colm Keena, Public Affairs Correspondent.

The chief executive of DCC Mr Jim Flavin has now given evidence as to his involvement in the three deals that are at the heart of the Fyffes/DCC insider dealing case.

The case involves two key questions: was Mr Flavin involved in the deals; and was he in possession of price-sensitive information at the time?

Yesterday he characterised his involvement in the deals as that of a conduit to Dutch resident DCC subsidiary, Lotus Green, which had the authority to deal and which did deal.

He received his first, unsolicited approach from Kyran McLaughlin of Davy stockbrokers, on January 27th, 2000. This was the day, or very close to the day, he received the second of the two Fyffes trading statements that Fyffes is claiming contained price-sensitive information.

Mr Flavin said he neither indicated an intention to sell, or its opposite, during his contact with Mr McLaughlin.

He knew Mr McLaughlin well. Both had been in Blackrock College, Dublin together, and they had been doing business since the 1970s.

On February 1st, Roy Barrett of Goodbody called him "out of the blue". There was a lot of interest in Fyffes because of its worldoffruit project, and the share price was rising. Mr Barrett suggested possible deals at the market price, which was €3.30.

Mr Flavin said he kept Fergal O'Dwyer of DCC informed of these contacts. Mr O'Dwyer was the sole Irish director of Lotus Green. Mr Flavin was concerned that if a bid was received, the Lotus Green board would be available to accept it.

On February 1st, Mr O'Dwyer told Mr Flavin that Lotus Green was to hold a board meeting on February 3rd. The meeting took place at 7.45am Dutch time, and Mr O'Dwyer afterwards told Mr Flavin that it had been decided that Lotus Green would sell if a bid for more than €3 per share was received.

On February 2nd, Mr McLaughlin called to say he would be interested in buying all DCC's shareholding in Fyffes, at €3 per share. Although this is referred to as a bid in recorded conversations that took place the next day between Mr Flavin and Mr Ronan Godfrey, Mr Flavin said yesterday that they were more in the nature of an expression of confidence by Mr McLaughlin that such a deal could be put in place.

On February 3rd, Mr Flavin was again in contact with Mr McLaughlin and Mr Barrett. He said he did not negotiate with the two men on the issue of price, and had no recollection of discussing commission payments with them.

When Mr Godfrey, following a few more conversations, formally put a bid to Mr Flavin, he told him he had no authority in the matter, and that authority rested with an entity in Holland.

A short laugh that could be heard around this point, was a nervous mannerism rather than a true laugh, Mr Flavin said.

Tom Diepenhorst, director of Lotus Green, then called Mr Godfrey and confirmed the deal at €3.20 a share. Mr Flavin was afterwards told of this confirmation.

The next sale occurred on February 8th and involved only Goodbody. Mr Barrett called Mr Flavin and offered to purchase 8 million Fyffes shares at €3.60. He told Mr Barrett he had no authority to deal, and pointed him towards Mr Diepenhorst.

Mr Flavin contacted Mr O'Dwyer. Mr Ashmore has given evidence that when he subsequently called Mr Diepenhorst on Mr Barrett's instructions, and made the bid, he felt Mr Diepenhorst had been waiting for the call.

Mr Diepenhorst accepted the bid. Mr O'Dwyer and Mr Barrett each informed Mr Flavin after the deal, that it had occurred.

On February 14th, Mr Barrett again called Mr Flavin, this time to offer him €3.90 per share for 5.27 million Fyffes shares. Again Mr Flavin told him he would have to contact Mr Diepenhorst. He then called Mr O'Dwyer.

Mr Ashmore has said that when he made this bid, again on Mr Barrett's instructions, he again felt Mr Diepenhorst had been waiting for his call.

Again Mr Barrett and Mr O'Dwyer called Mr Flavin after the sale had gone through.

On January 31st, Mr Flavin called Alvin Price of William Fry solicitors, to discuss the possible sale of DCC's stake in Fyffes.

The men discussed the issue of DCC's freedom to deal given that Mr Flavin was on Fyffes' board. The issue was whether Mr Flavin was a "connected person" under the listing rules. Mr Price and Mr Flavin felt he was not.

The two men also discussed the issue of price-sensitive information.

Mr Flavin felt Mr Price may have raised the issue. A memo by Mr Price reads: "He said that he had examined his conscience with regard to any price-sensitive information and felt he didn't have any."

Mr Flavin mentioned the trading reports to Mr Price but said two poor months was not unusual for Fyffes.

Mr Price agreed that Mr Flavin was not in possession of price-sensitive information.