Ardagh directors are confident of winning a vote this week to take the listed company's glass-making operations private, writes Dominic Coyle.

Shareholders vote on Wednesday on the proposal to demerge the glass-making operations - Rockware in Britain and Consumers Glass in Italy - from the group and move them to a private group incorporated in Guernsey. Shareholders voting by proxy must have their ballots returned by close of business today.

The company directors are assured of the support of almost 58 per cent of the shares. They will require three-quarters of the shares voted on the day to win the key votes but are confident of achieving this.

"Our intention is to push through the resolutions to implement our proposal," said chief executive Mr Eddie Kilty. "We feel we can succeed. "What we are trying to do is to create extremely good value for shareholders."

The company argues that, with HgCapital - the 30.6 per cent shareholder in Ardagh - taking cash, those shareholders opting for the arrangement will have a larger stake of the glass-making business than under the existing arrangement.

The Ardagh board has explained the move as a response to HgCapital's wish to exit its position, the low rating of the company in the market and the attendant difficulty in raising finance for development.

The deal has been criticised for failing to give investors a reasonable opportunity to opt out. Some shareholders have complained to the Irish Stock Exchange. They are understood to be angry also that, apart from the fact that Mr Coulson's Yeoman is driving the proposal and will be by far the dominant investor in the new company, he will also benefit from the funding arrangements surrounding the deal.

Mr Coulson's Yeoman International has supplied some of the funding for the move on which he will receive interest and he will also receive an arrangement fee for financing arranged with Anglo Irish bank. The Irish Stock Exchange has repeatedly refused to comment on the affair.

A report by the company's stockbroker, Davy, hails the offer of a continued stake for shareholders as "possibly the most important element" of the deal. However, it neglects to mention that the Quinn offer provides the same possibility along with a defined exit mechanism for those wishing to sell those shares later.