Alphyra management faces further opposition to its attempt to take the company private. It is understood that a group of shareholders with sufficient strength to block any eventual deal is working with Dublin stockbroker NCB to examine ways to encourage a higher offer for the company.

A spokesman for NCB last night refused to comment.

Funds with money invested in Alphyra indicated that the NCB group could control up to 30 per cent of the stock - enough to stop the management buyout (MBO) team securing the 80 per cent it needs to win outright control of the group.

The shareholders involved are understood to feel the indicative offer of €2.80 per share from First Data for the group before its withdrawal from the competition indicates there is more money available to shareholders than the €2.70 a share being offered by Rendina.

Last night, Euronet, another US-based electronic payments group, said it was not in takeover talks with Alphyra. However, it held open the possibility of a future approach. Reports over the weekend had suggested that an offer from the Kansas-based group, which is listed on the Nasdaq, was imminent.

Euronet confirmed it did have discussions with the Irish group last summer regarding a business link but these had since ended.

"Euronet regularly evaluates acquisition candidates and it is possible that Euronet would consider a bid for Alphyra in the future under the right circumstances," the company said in a statement.

The Irish Times has also got sight of the letter at the centre of the row following the withdrawal of First Data.

The letter confirms that Alphyra management informed First Data of its intention to continue acting as a "united group" even if its MBO bid was not successful.

The letter is dated January 27th, the day on which First Data made its indicative bid for the company.

It expresses a wish to avoid sounding "confrontational" in circumstances where a "partnership" is being discussed but goes on to make clear that the MBO team would remain a "united group" in the event of First Data gaining control of the company.

"For the avoidance of any doubt, we are totally committed to our MBO plans and if, for any reason, these do not come to pass as we expect they will, then together we will decide on an alternative course," the letter reads.

It continues: "We are the team that have built this business over the past five years. We have been successful and we enjoy working together."

The letter goes on to acknowledge that First Data "must be afforded an opportunity to meet the Rendina team" and expresses the group's willingness to discuss how best a partnership could be structured.

The latest developments come just days after Rendina, the MBO vehicle of the nine-strong management team, surprised markets by increasing its offer for the company from €2.45 a share to €2.70.

It is understood that there have been a number of complaints to the Irish Takeover Panel about the attitude of Alphyra management to other expressions of interest in the company.

This first arose in connection with an attack by the MBO team at the first mention of interest from First Data following the launch of its bid. They said they would regard any such bid as "hostile and unwelcome".

While the company's independent directors insisted that any offer increasing shareholder value would be welcome, the MBO team led by chief executive Mr John Nagle, chairman Mr Jack McDonnell and finance director Mr John Williamson subsequently reiterated its opposition.

The management stance is known to have infuriated certain US fund managers.