The Irish Takeover Panel, which is investigating controversial share dealing in Gresham Hotels, has summoned the company, a Hong Kong-based businessman, an Israeli-based bank and Davy Stockbrokers to a public hearing, Siobhán Creaton, Finance Correspondent

The panel has written to the Gresham Hotel Group, to businessman Mr Balram Chanrai and to the Discount Bank of Israel, through which he bought the shares.

Davy Stockbrokers acted for Mr Chanrai in acquiring the Gresham shares while its corporate finance arm, which handled Red Sea's initial investment in the group, has also been summoned to the hearing on July 8th.

Davy Stockbrokers also hold 2.5 million Gresham shares, equal to a 3 per cent stake, on its own trading account, having purchased the stake in recent weeks.

This is the first time the Takeover Panel has held such an investigation in public. The inquiry is seeking to establish whether Red Sea Hotels, the largest shareholder in Gresham Hotels, has been acting in concert with Whiterain International, a vehicle used by Mr Chanrai, who recently acquired an 11 per cent stake in the hotel group.

If the two groups were found to be acting in concert, they could be forced to make a bid for the company. None of the parties has responded to its invitation so far. Both Gresham and Precinct, the consortium that has bid for the listed company, are understood to have complained to the panel about Whiterain's purchase of shares.

Meanwhile, Precinct announced last night that it had received acceptances from shareholders holding 37 per cent of its stock and had extended its offer deadline by another week to July 6th.

In a statement issued yesterday evening, Precinct said it had received valid acceptances in respect of a total of 29.5 million ordinary shares. It has received valid acceptances totalling 3,367 preference shares equal to 0.08 per cent of those in issue. It has received 1.8 million acceptances in respect of Gresham Share Options.

Precinct needs approval in respect of 54 per cent of Gresham's shares for its €1.30-per-share offer to become unconditional.

The consortium comprises property developer Mr Bryan Cullen, builder Mr JJ Murphy and solicitor Mr David Coleman. They have said they would raise the offer to €1.35 per share if the acceptance rate reached 80 per cent.

Red Sea, Gresham's largest shareholder with a 28 per cent stake, opposes the offer.

Precinct could suspend the offer period during the Takeover Panel's investigation.

If the panel were to find that the two parties were acting in concert, it could compel them to make an offer for Gresham equal to the highest price they paid for the shares. Mr Chanrai has paid as much as €1.34 per share to acquire his stake.