Businessman Mr Austin Conboy has brought his stake in Capital Bars closer to the crucial 10 per cent level after buying another 100,000 shares on New Year's Eve and a reported 60,000 shares on the London market yesterday.

After the New Year's Eve purchase of 100,000, Mr Conboy's stake rose to 9.6 per cent while the 60,000 shares understood to have been bought yesterday brings that stake to 9.8 per cent. Once Mr Conboy passes the 10 per cent threshold, which would involve buying an additional 70,000 shares, his stake cannot compulsorily be acquired by the O'Dwyers under their 21p sterling a share offer for the Capital shares they do not already own.

Mr Conboy said yesterday that, while not confirmed by his stockbroker, the Capital shares traded yesterday probably involved himself. "As far as I know, I'm the only one in the market for the shares. My broker has an instruction to buy whatever he can get. I hope to have a sizeable slice of the shares by the end of the week," he said. He added that he was not aware what level of acceptances the O'Dwyers would need to delist Capital from the stock market and take the company private with himself as a substantial minority shareholder. "I'll look at that situation if it happens," he said.

Once the O'Dwyers own more than 75 per cent of Capital, they could table the special resolution needed to delist the shares and take the company private. Market sources believe it is most likely the O'Dwyers will get sufficient acceptances to delist Capital and will try to buy out Mr Conboy's interest in a private deal later on.