The takeover battle for Irish Continental Group (ICG) is expected to come to a head on Thursday after the company's independent directors issued an ultimatum giving the two bidders three days to confirm the highest price they are prepared to pay to acquire the ferry operator.
In a statement to the Irish Stock Exchange to coincide with the group's annual general meeting yesterday, the independent directors said they were very aware of the considerable time which had passed since the offer period commenced on March 8th and the "lack of clarity" as to when there will be certainty of an outcome.
As a result, they have written to both parties requesting they confirm by no later than noon on July 26th the highest price they are prepared to pay and what their intentions are if the independent directors recommend an offer other than their own.
The proposed takeover of ICG stalled on June 20th when Eamonn Rothwell, the current chief executive of ICG and chairman of Aella, one of the two groups seeking to take over the company, increased his stake in ICG and raised his offer to match the €22 a share approach made by Moonduster, the rival bidding consortium. Since then, property developer Liam Carroll has amassed a 10 per cent stake in ICG.
The independent directors yesterday said that on the basis of their current shareholdings - Moonduster, which comprises shipping company The Doyle Group and One51, the investment vehicle controlled by Philip Lynch, controls 20.38 per cent of ICG's issued share capital and Aella 17.19 per cent - it believes that neither group will be capable of implementing its takeover without the support of the other party. The directors said they had initiated discussions aimed at alleviating the deadlock but no resolution has been reached.
Sources close to the situation, however, expressed doubt yesterday that either party will respond to the independent directors' request, saying they expect the stalemate to continue.
The emergence of Mr Carroll has prompted speculation that if neither Aella or Moonduster is prepared to significantly increase their bid, another offer from an unrelated party may be the only way forward. Having paid as much as €24 a share - €2 more than the current offer price - for some of his stake, Mr Carroll is believed to have his eye on the land owned by ICG in Dublin Port. If the companies, which have set their own deadline of October for the offer period to end, fail to respond to the independent directors' request, the issue will likely be referred to the Takeover Panel.
The next step is uncertain, as the scheme of arrangement under which the offers have been made doesn't fall under existing takeover panel rules and, as a result, has no prescribed timelime in which events have to take place.
A panel spokesman said in these circumstances, its only legal requirement is to ensure the target company's business is not disrupted for an unnecessarily long period.
