THE TAKEOVER Panel will not be conducting a hearing into an allegation of concert party trading involving Irish Continental Group (ICG).

The panel issued a short announcement to the Irish Stock Exchange yesterday saying it had made extensive inquiries into the matter and decided not to hold hearings.

The panel may hold hearings, in public or otherwise, into suspected breaches of the rules governing takeovers.

"On October 7th, 2008, the panel issued an announcement confirming that it was considering certain matters relating to ICG which were referred to in a letter received by the panel from a third party," the announcement stated.

"Following its extensive inquiries, the panel has decided in light of the available evidence not to hold a hearing under section 11 of the Irish Takeover Panel Act 1997 into the matters raised in the letter referred to above. In the event of a change in circumstances, the panel will review its decision."

The panel was looking at allegations of concert party trading last year between the Moonduster consortium and UK investment fund Arkaga.

Moonduster had strongly rejected any allegation of wrongdoing.

Philip Lynch's One51 investment group was part of the Moonduster consortium, which had tabled an offer for ICG.

Last October, The Irish Timesrevealed that the panel had received a letter from Kevin Beary, managing director of Dolmen Corporate Finance, alleging a link between Moonduster and Arkaga, which had a shareholding in ICG.

The letter was based on a conversation Mr Beary claimed he had had earlier this year with David Hayes, a former director of Arkaga, who claimed Arkaga was involved in helping Moonduster by buying ICG shares through a vehicle called Buchanan Holdings.

Earlier this month ICG chief executive Eamonn Rothwell and the Moonduster consortium announced they were engaged in discussions with a view to a potential offer for ICG.

The two parties had been rivals for ICG last year, when both bids failed.

The shipping group has been the subject of a protracted takeover battle for more than 18 months.

Mr Rothwell and Moonduster are understood to have had discussions with a number of banks and they said they are confident they could arrange the required funding if they were to make a successful bid.