Shares in Jurys Doyle Hotel Group slipped back to €17.50 yesterday as property developer Paddy Kelly denied a weekend newspaper report that he is prepared to top Precinct's offer for the hotel group.

Mr Kelly was responding to a request for clarification from the Irish Takeover Panel following a report in the Sunday Times which quoted him as saying he was willing to bid 5 per cent more than Precinct's indicative price of €17.50 per share.

"We have no recollection of making such a statement," Mr Kelly and his long-term business partners in Choice Hotels Ireland, Prem Group and Heuston Hospitality said.

In a statement issued yesterday, they also said that none of the above parties had been in contact with members of the media since issuing a statement on August 17th confirming their interest in Jurys Doyle.

However, the Sunday Times said last night that it stood over its story.

Mr Kelly and his consortium of investors went on to say they retained "a potential interest in participating in an offer, although there is no guarantee that such an offer will be forthcoming.

"Furthermore, we have not determined what value we would attribute to the shares of the company," the statement said.

The statement, allied to an earlier rumour in the British press that the billionaire Reuben Brothers, backers of the Precinct consortium's €1.1 billion approach for the hotel group, were getting cold feet, knocked the Jurys share price. The stock closed 15 cent lower at €17.50, the price Precinct has indicated it is willing to pay for the company.

However, sources close to Precinct dismissed the rumours about the Reuben brothers. "They are still very actively involved," a source close to the bidding vehicle said.

The Irish Takeover Panel has given Precinct until September 2nd to table a firm offer for the company.