TWO PARTNERS from Price Waterhouse Cooper (PwC) are attempting to broker a settlement between DCC and Fyffes over the damages arising from the lengthy insider dealing litigation between the two companies.

PwC's former managing partner, Donal O'Connor, and tax partner Feargal O'Rourke are said to be "facilitating" talks between the two companies.

The talks are said to be at a delicate stage and any settlement brokered by PwC would be subject to the agreement of the boards of both DCC and Fyffes.

PwC are auditors to DCC, and Mr O'Connor was involved in some of the behind the scenes moves by DCC to head off the potential litigation from Fyffes.

Fyffes sued DCC on the basis that the company and its chief executive Jim Flavin - who sat on the Fyffes board - has access to insider information when DCC disposed of its shares in Fyffes in 2000 for €106.7 million.

The case went to the Supreme Court last year.

It ruled Mr Flavin was in possession of price-sensitive information at the time of the transaction.

The case then reverted to the High Court for a ruling on the damages that DCC will have to pay to Fyffes.

The case is due to be heard by Mr Justice MacMenamin next June. A settlement before then could mean that the director of corporate enforcement, Paul Appleby, would have to initiate his own proceedings in the courts to seek to restrict or debar directors who were involved in the share trades.

Without naming any individuals, Mr Appleby recently pointed out to the High Court that it was empowered of its volition to take action if it deemed that to be appropriate.

The possibility of a settlement first emerged in January, when it became clear that there was no difference between Fyffes and DCC on the basis for the quantum of damages to be calculated. The sole issue to be heard in June is the level of damages to be awarded to Fyffes.

They will be calculated according to the difference between the price realised for the shares and the price they would have fetched if information about the deterioration in Fyffes business had been known to the market at that time.

An alternative basis for damages, one that is not now being pursued by Fyffes, is that the quantum would be determined by the €85 million difference between the price realised and the price at which DCC had acquired the shares.

Fyffes decided not to proceed on that basis in light of legal advice which suggested that an award calculated on that basis might be open to a constitutional challenge.

PwC declined to comment last night and there was no comment from either Fyffes or DCC.