PGA European Tour Courses, the golf course company in which Mr Denis O'Brien's Quinto do Lago group has a 10.7 per cent stake, has received an approach which may lead to a bid for the company.

But market sources believe that Quinto do Lago is unlikely to be a bidder for PGA European Tour Courses, as it recently sold 1.25 million shares - or almost 2 per cent of the company - to Irish businessman Mr Shaun Cunningham. Neither Mr O'Brien nor Mr Cunningham could be contacted for comment.

PGA European Tour operates a number of championship courses in various countries, including Portugal where it leased a course from Mr O'Brien's own golf development at Quinto do Lago. At its current share price of 38p sterling, it is valued at £24.3 million sterling (#38.4 million), leading some observers to suggest that if Mr Cunningham is involved in a bid he may in fact be heading a consortium of investors.

In the 12 months to the end of December 1999, PGA had revenues of £7.5 million sterling and pre-tax profits of just under £2 million sterling. In its most recent half-year to the end of June 2000, revenues were £4.1 million sterling with pre-tax profits of £1.2 million sterling.

PGA's shares are tightly held with US group Club Corp holding 29.9 per cent while Mr Mark McCormack's International Management Group and the Professional Golfers' Association each hold 19 per cent.

Mr O'Brien has been an investor in PGA for the past year and in stages built up a 12.7 per cent shareholding. Given his passion for golf and his immense wealth after the sale of Esat, many expected him to bid for PGA. Mr O'Brien's own Quinta do Lago property - bought three years ago for £25 million (#32 million) - includes four 18-hole golf courses leased to a number of international companies including PGA. It also includes a five-star hotel and several sailing lakes.