Riverdeep MBO bid advances

Riverdeep chief executive Mr Barry O'Callaghan moved a step closer to success in his bid to take the company private when shareholders yesterday approved management arrangements related to the offer.He won the support of 96.81 per cent of those voting at an extraordinary general meeting.

Approval at a sparsely attended e.g.m. was central to the plans by Mr O'Callaghan and company founder Mr Pat McDonagh to buy out shareholders in the $376.3 million (€345.5 million) deal. Without it, their bid would have lapsed despite the 58.8 per cent acceptances it had already secured.

In the event, only 18 shareholders attended the meeting, outnumbered by company directors and advisers, and there was no dissent before the vote was taken on the issue.

Mr O'Callaghan welcomed the vote and said the lack of adverse comment at the meeting was probably the most welcome factor.

"As the emotion has drained away from the issue, people have seen there is a certain fairness in the process and in the offer," he said.

The next closing date for the offer by Hertal, the O'Callaghan/ McDonagh management buyout (MBO) vehicle, is Monday. Hertal needs to secure the support of 80 per cent of those shareholders not connected with the MBO.