A FEW months ago, yet another rumour did the rounds about Granada selling off the Shelbourne Hotel. That rumour turned out to be unfounded, but inevitably Dermot Desmond was the one linked with a bid for the prestigious Dublin hotel.

If the most recent reports in linking Mr Desmond, Mr J.P. McManus and others with a £40 million bid for Granada's superswish Sandy Lane Hotel in Barbados culminate in a deal, Mr Desmond will have taken yet another step to expand his burgeoning business empire.

Already it includes his own investment company, stakes in nascent mobile phone and commercial radio companies, airports, property and investments in various public companies. Dermot Desmond has certainly not been quiet, with his heavy investment schedule in recent years largely funded by the proceeds of the sale of NCB Stockbrokers and Quay Financial Software.

For Mr Desmond, the years since the Glacken report on the Telecom site affair - which named him as the main mover and main beneficiary of the affair - have been busy ones. That Glacken report angered the then NCB chairman, who subsequently relinquished his post for a period.

Mr Desmond has consistently disputed the findings of John Glacken which he claimed were based substantially on "views, opinions and surmise".

Apart from building his business empire, Mr Desmond's interest in sports has also been indulged. He invested £4 million for a 10 per cent stake in Glasgow Celtic when "The Bhoys" were floated on the stock market by Fergus McCann. That investment has turned out to be a happy one and the value of Mr Desmond's initial £4 million investment has risen as high as £17 million.

Mr Desmond has also made a string of investments in Irish stock exchange companies. He has never publicly explained his plans and many in the investment community are confused at the strategy which sees Mr Desmond and/or his International Investment & Underwriting (IIU) vehicle become involved in many deals that the rest of the investment community has shunned.

At the last count, IIU owned 13.1 per cent of Unidare, 6.5 per cent of troubled foods group Golden Vale, 3.5 per cent of engineering group Barlo and 3.3 per cent of engineering and shipping group Jones.

The one thing that all four companies have had in common in recent years are dismal trading and share price performances, although Barlo's latest results have shown some improvement.

This had led to speculation that IIU is either buying in at the bottom with the aim of taking profit on a recovery or investing in anticipation of takeovers.

A £660,000 paper gain on the Barlo investment would more than make up for the cash losses on the other shares. But the share portfolio has still to generate a return. Substantial gains look unlikely in the short-term, bar an unforeseen improvement in the fortunes of the engineering companies or a rationalisation in the dairy industry, perhaps involving a merger of troubled Golden Vale with near-neighbour Dairygold. IIU's team of dealers, meanwhile, are thought to have made substantial sums trading on the international markets.

But Dermot Desmond and IIU have not confined themselves to investing in the financial markets. The decision to invest in start-up ventures like Esat Digifone - which is due to introduce the second mobile phone service - and Radio Ireland are evidence of a strategy of investment in key growth sectors of technology and communications. IIU has 20 per cent of Esat Digifone and 7.5 per cent of Radio Ireland, which intends to launch a national commercial radio service next March.

But perhaps the most-publicised investment by companies associated with Dermot Desmond was the £14.5 million sterling acquisition of London City Airport and £9 million for surrounding land. Prior to the acquisition, London City was a loss-maker but most analysts believe that the airport has a bright future, if it can boost passenger numbers.

Dublin's IFSC, where IIU is located, remains the centre of much of Mr Desmond's activities. He has invested considerably in developing proposals for a state-of-the-art giant aquarium at the centre.

After buying the south block for an undisclosed sum, Mr Desmond sold two floors to Irish Nationwide for £13 million, another one a half floors to Woodchester for around £15 million and the penthouse floor to First National.

But a more high-profile property play may now be in prospect. The reported £40 million bid for the Sandy Lane Hotel on behalf of himself, J.P. McManus and other investors thought to include John Magnier and Joe Lewis would, however, catapult Dermot Desmond onto the world stage. Sandy Lane - a 120-bed hotel where B&B rates can rise to £1,500 a night in peak season - has a certain cachet.

The only question is whether paying a reported £40 million for a hotel which Granada carries in its books at £26.6 million and which has been revalued by Christies at £32.5 million is paying over the top?