Arkaga - Irish Times Friday October 17th

Oh dear! What have arkaga got themselves into now? :)

http://www.irishtimes.com/newspaper/...108326190.html

THE PHILIP Lynch-led Moonduster consortium said yesterday it was co-operating with inquiries by the Irish Takeover Panel in relation to claims of a link between the investment vehicle and the UK-based Arkaga fund regarding share buying last year in ferry company Irish Continental Group (ICG).
The consortium said it would take whatever measures were necessary to protect itself against any claims that it dealt inappropriately in ICG shares.
"Moonduster, One51, the Doyle Group and the [Irish] Takeover Panel have been in contact," the statement said. "Moonduster, One51 and the Doyle Group will co-operate fully with the Takeover Panel. The claims made are totally spurious. One51 and the Doyle Group will do whatever is necessary to protect their good names and reputations."
Moonduster comprises Lynch's One51 group and the Cork-based Doyle shipping company.
This is the latest twist in the ICG takeover saga and follows the revelation by The Irish Times earlier this month of claims by Kevin Beary, managing director of Dolmen Corporate Finance, made to the watchdog about a link between Moonduster and Arkaga.
In a letter to the takeover body, Mr Beary outlines a meeting he had in July with David Hayes, who formerly worked for Arkaga.
It is understood that the Takeover Panel has received at least two pieces of correspondence recently that contradict aspects of Mr Beary's letter.
Mr Hayes is believed to have written to the panel outlining the circumstances of his meeting with Mr Beary. He states that it was a job interview with Mr Beary, in his capacity as a senior executive with Dolmen.
While accepting that they spoke about ICG, Mr Hayes states that Mr Beary's recollection of their conversation was not accurate and that he has no knowledge of any impropriety in relation to Arkaga's role in ICG.
Separately, property developer Liam Carroll is believed to have informed the Takeover Panel that neither Mr Beary nor Dolmen were being retained by him to advise on ICG. He is thought to have informed the watchdog that Dolmen were used by his company, South Morston Ltd, to buy shares in ICG last year, with the last of those purchases being concluded in November 2007. Mr Carroll owns 29.8 per cent of ICG.
It is understood that NCB Stockbrokers, which is acting on ICG's behalf, wrote to the Takeover Panel again this week to state its concern about The Irish Times report of last Saturday, which outlined Arkaga's demand for €11.8 million from Moonduster as compensation on losses it incurred buying shares in the ferry group last year.
NCB is believed to have urged the Takeover Panel to investigate the matter thoroughly.
It is understood that Arkaga is seeking to enforce the terms of an agreement that it claims it had with Moonduster in relation to these shares. Arkaga claims that it bought the shares as an agent for Moonduster.
If proven, this would make Arkaga and Moonduster concert parties in last years bitter takeover battle for ICG and would put them in breach of rule nine of the takeover code. Arkaga built a stake of 5.17 per cent in ICG through a vehicle called Buchanan Holdings buying shares for more than €24.
It emerged yesterday that about half of these shares were acquired over the summer by construction group Laing O'Rourke. In his recent letter to the Takeover Panel, Mr Beary claimed that he was told that Laing O'Rourke was involved with Arkaga and Moonduster in relation to the redevelopment of ICG's site in Dublin Port.
© 2008 The Irish Times