Barlo Group plc chief executive, Dr Tony Mullins, last night looked set to succeed in a buyout of the company for 40 cents a share.

The figure, a 10 cent per share improvement on his previous offer, is worth €70 million. This is less than the €78.75 million that some analysts recommended in July, after he made his initial approach to the company.

Dr Mullins' original approach was made on the basis of an offer price of 30 cents per share, or €52.5 million for the company.

Last night, a company statement said this had been revised to 40 cents per share, or €70 million.

The statement said that a committee of its board, comprising chairman Mr Niall Carroll and non-executive, Mr John Farrell, was in talks with Dr Mullins' buyout vehicle, Melgan, "with a view to having a firm intention to make an offer announcement" by mid-January.

The statement stressed that there could no certainty that he would make an offer.

It is understood that Dr Mullins already has secured debt to fund part of the deal, and is seeking private investors to completely finance the offer.

Following his original approach in July, analysts said that 30 cent a share undervalued the combined radiator and plastics group. Both Merrion Stockbrokers and NCB said an offer of 45 to 55 cents would be a fairer value, while Goodbody Stockbrokers recommended closer to 40 cents.

An offer of 45 cents would value Barlo at €78.75 million, while 55 cents would give it a €96.25 million price tag.

Shareholders at the company's annual general meeting two weeks later criticised Dr Mullins' offer.

They were told the board had appointed Mr Carroll and Mr Farrell to consider any offer that might result from the approach.