The fast growing IAWS agri business company may soon announce that the co-operative which controls it will allow its stake to fall below the 51 per cent controlling level.

IAWS is one of a small number of publicly quoted companies controlled by the co-operatives which set them up. Another of companies, Kerry recently indicated that Kerry Co-op may soon allow its holding in the publicly quoted company to fall below the 51 per cent level.

Reducing a co-operatives' stake in a company requires rule changes, which must be approved by the members of the co-operative at a series of meetings. Some 75 per cent of the co-op members must vote in favour of the change at each meeting. The co-op the Irish Agricultural Wholesale Society owns about 60 per cent of IAWS.

IAWS is a fast growing food and agriculture company. It operates in four key sectors fertilisers, proteins and oils, animal feed and foods. In each sector the group has a significant market share. IAWS has grown mainly by acquisition.

For the co-op members, ceding control would mean realising some of the value of their holding in the company. But the members would have to weigh up a cash bonanza against losing control of the company.

For the company, breaking the co-op's control would make it more attractive to institutional investors and make it easier to raise cash on the markets.

In March IAWS reported strong profit growth for the six months to the end of January, with a 38 per cent rise in pre-tax profits to £4.8 million. With most profit growth in the second half, brokers expect the company to generate pre tax profits of about £17 to £18 million for the full year.

IAWS shares rose 2p to close at 54p yesterday.