When DCC chief executive Mr Jim Flavin organised unlawful €106 million "insider deals" in shares in the fruit distributor Fyffes in early 2000, he had "significant and highly confidential" information not then available to the market indicating "a decline" in the underlying trading performance of Fyffes, the High Court was told yesterday, reports Mary Carolan

Fyffes would be calling Irish, US and British market experts who would say that, had the same information been available to the market at the time of the share deal, there would have been a fall in the Fyffes share price, Mr Paul Gallagher SC, for Fyffes, said.

When the DCC shares in Fyffes were sold between February 3rd and 14th in 2000, the share prices obtained ranged from €3.20 to €3.90. On March 20th, 2000, when Fyffes announced the information which was available to Mr Flavin months earlier, the share price fell by almost 20 per cent, Mr Gallagher said.

He said Fyffes would dispute claims by DCC and Mr Flavin that the fall in the share price related mainly to the market's perception of Fyffes involvement in a dotcom venture - Worldof fruit.com.

Counsel noted that, when that venture was discussed at a board meeting on December 9th, 1999, and after, and it was suggested Fyffes was seeking a valuation of $100 million for it, Mr Flavin had said valuations for internet companies would fall dramatically and he would take $25 million.

Mr Gallagher said the performance of Fyffes's core business was the important factor in determining the share price. He said it was clear from minutes of Fyffes board meetings in late 1999 that Mr Flavin was aware of the significance of the information regarding that core business which was being made available to him as a director.

When a board meeting on October 29th, 1999, was told the market was still very difficult and that Fyffes was monitoring the need to make an announcement, Mr Flavin had said this was "a marginal call" and that the day of the board meeting was the last day of availability to "nudge the analysts" before the end of the company's financial year on October 31st.

Counsel was continuing his opening of the legal action brought by Fyffes in which it is seeking some €85 million compensation arising from the February 2000 share deals which, the company claims, breached "insider dealing" provisions of the Companies Acts.

The action is against DCC plc; S&L Investments, of DCC House, Stillorgan, Co Dublin; Mr Flavin, of Shankill, Co Dublin; and Lotus Green Ltd, of Fitzwilton House, Wilton Place, Dublin, a subsidiary of DCC which owned 10 per cent of Fyffes.

Fyffes claims Mr Flavin had price sensitive and confidential information and "masterminded" the share deals. The defendants deny those claims and, Mr Gallagher has outlined, will plead that Lotus Green dealt in the shares and that Mr Flavin had no involvement other than passing on to Lotus Green unsolicited bids for the shares.