Hibernian Investment Managers Ltd and Eagle Star Life Assurance Company of Ireland Ltd have launched separate legal proceedings against Development Capital Corporation (DCC), its chief executive, Mr Jim Flavin, and two other companies.

Both pension fund managers allege unlawful dealing in the shares of the major fruit distributor, Fyffes plc.

The High Court yesterday adjourned for two weeks claims by Eagle Star and Hibernian Investment against DCC and S&L Investments Limited, both with addresses at DCC House, Stillorgan, Co Dublin; Mr Flavin, of Eaton Brae, Shankill, Co Dublin; and Lotus Green Ltd, Fitzwilton House, Wilton Place, Dublin. Lotus Green is described as a subsidiary of DCC which owned 10 per cent of Fyffes.

Hibernian and Eagle Star claim they are entitled to be compensated by DCC, S&L Investments, Lotus Green and Mr Flavin for losses arising from their purchase of ordinary shares in Fyffes. Eagle Star bought 2.5 million shares while Hibernian Investments acquired 300,000 shares.

Both companies say they bought their shares in early February 2000. It is alleged the transactions constituted unlawful dealings in the shares.

Last week, Fyffes, by consent, got a High Court order permitting it to begin proceedings against DCC, Lotus Green, S&L Investments and Mr Flavin.

Pleadings between the parties in the claim by Fyffes have been exchanged. Fyffes claims that, as a non-executive director, Mr Flavin had detailed financial information on Fyffes' trading for the months of November and December 1999 and trading forecasts for January 2000 and that he took advantage of this information to procure the sale of DCC's stake in Fyffes in February 2000 at a profit of €85 million (£67 million).

Mr Flavin has rejected the claim that he was in possession of price-sensitive information or that he passed on any such information to Lotus Green, the Dutch subsidiary of DCC that had control over the Fyffes' shareholding. Mr Flavin is not a director of Lotus Green.

DCC has issued a statement to the Irish Stock Exchange denying allegations of insider trading.

In court yesterday, Mr Lyndon MacCann, for DCC, Lotus Green, S&L Investments and Mr Flavin applied for a two-week adjournment of the proceedings being pursued by Hibernian Investments and Eagle Star.

He said his clients would hotly dispute that there had been insider trading and all allegations made against them.

Mr Maurice Collins represented Hibernian Investments and Eagle Star. Mr Justice O'Higgins adjourned the proceedings for two weeks.