The former managing director of Ire-Tex , Mr Paul Burke, and a group headed by chief executive Mr Paul McLaughlin are competing for the packaging group, informed sources have told The Irish Times.

Mr Burke, who owns 27 per cent of Ire-Tex, confirmed yesterday that Nobleford Investments had approached the Ire-Tex board with a conditional offer of 40p (50 cents) a share. Mr Burke has a 75 per cent stake in Nobleford Investments and clients of BCP Stockbrokers have 25 per cent. The offer values Ire-Tex at £13.6 million.

A competing bid for the company, known as ILP until last year, is understood to come from the group headed by Mr McLaughlin. Mr Burke's brother, Justin, holds 7.8 per cent of Ire-Tex through his Alert Packaging company. But it is understood Mr Justin Burke is not involved in the Nobleford approach. His 7.8 per cent shareholding, however, gives him considerable influence in deciding the outcome of a takeover battle between the firm's former and current managing directors.

Mr McLaughlin has previously declined to reveal the identities of the bidders. But the fact that Monday's disclosure came from the Ire-Tex non-executive directors suggests the management group has made its own approach.

It is understood that Mr McLaughlin and finance director Mr Kevin Hogan are involved in the management buy-out group and that they have also indicated an offer of 40p a share. Nobleford Investments, however, has a clear head-start in any bidding for Ire-Tex because of Mr Burke's 27 per cent holding, while the management group has Mr McLaughlin's 11 per cent stake and Mr Hogan's 1 per cent.

The approaches will be considered by the two non-executive directors - chairman Mr John Bourke (also chairman of Irish Life & Permanent) and UK financier Mr Jasper Allen. It is understood this is the third time Nobleford has approached Ire-Tex.