Mar 12 2004
Despite the endorsement of Barlo Plastics non-executive committee to the shareholders to accept the management buyout offer of Chief Executive Anthony Mullins’ newly formed company, Melgan, the deal could be in jeopardy.
In recent weeks Dermot Desmond, through his investment vehicle IIU have acquired a larger stake in the company, taking his holding to just under 17%. Should he acquire more stock, taking his share of the company to 20%, he will hold enough equity to oppose the Melgan deal which requires 80% approval to proceed.
Interestingly, Desmond’s most recent stock purchase saw him pay 42cents per share, 2cents above the amount offered by Melgan.
A decision on the management buyout will be made later this month at an emergency general meeting.
Barlo are a manufacturer of plastics and radiators.
For more information on radiators, click here.