Businessman Mr Austin Conboy has confirmed that he has crossed the crucial 10 per cent shareholding level, which prevents the O'Dwyer brothers, Liam and Des, compulsorily acquiring his shares as part of their 21p sterling (34 cent) a share offer for the 56 per cent of Capital Bars they do not already own.

Mr Conboy disclosed yesterday that he owned just less than 12 per cent of Capital shares after buying more than 832,000 shares on Thursday at 26p sterling each, 5p higher than the 21p general offer from the O'Dwyers' Full Circle Investments takeover vehicle. Mr Conboy now holds 4.07 million shares, which have cost more than £1 million sterling - almost €1.75 million. But there are indications that Mr Conboy's stake-building in Capital may be coming to an end. Even though he was still bidding for stock yesterday at 25p sterling, turnover in the London market was just 25,000 shares.

If this is the case, the most likely outcome is that by the next closing date on January 18th, the O'Dwyers will have about 88 per cent of Capital shares with Mr Conboy holding 12 per cent. Because they cannot now get 90 per cent acceptances, the O'Dwyers will not be able to invoke the Companies Act and compulsorily buy out the remaining shares.

When the offer closes, the O'Dwyers will have to decide on their next move. Mr Conboy has already said he has not had any approaches or discussions with the O'Dwyers. In any event, the O'Dwyers would not be allowed to make a higher offer to Mr Conboy without making the same higher offer to all Capital Bars shareholders. Market sources believe the O'Dwyers will still take Capital Bars private with Mr Conboy as a large minority shareholder.

Once Capital is private and no longer subject to the Takeover Code, they could later make an offer to buy Mr Conboy out.