Packaging group Ire-Tex may be the next firm to leave the Irish stock market after disclosing that it has received two separate approaches which may lead to an offer at well above the current share price.

Ire-Tex used to be known as ILP until last year and is involved in packaging for the computer industry.

This is not the first time it has received potential takeover approaches. In December 1997 and July 1998 it also said it had had several approaches but nothing transpired on either occasion. Industry sources believe, however, that the latest moves are more substantive and that a bid for Ire-Tex could emerge.

If so, it will be good news for the group's shareholders, who have had to endure a dismal share price performance since Ire-Tex was floated in London five years ago at 75p (95 cents). Later, an Irish listing was added.

That flotation was oversubscribed five times but since then various factors, including losses in the US, poor trading results and a profits warning have conspired to drive the shares to a low of 17 cents last year before they recovered to trade at 30 cents before yesterday's announcement. Ire-Tex shares did not trade from their overnight 30 cents in Dublin, but closed with bids at 35 cents and offers of stock at 40 cents.

That bid price values Ire-Tex at €11.9 million. In London, the shares traded up almost 29 per cent and closed up 5-1/2p on 23-1/2p sterling.

Chief executive Mr Paul McLaughlin, whose family interests own almost 11 per cent of Ire-Tex shares, declined to comment on the identity of those who had made the approaches. But he said events were likely to come to a head within weeks.

He said Ire-Tex had suffered from the negative attitude towards small capitalisation firms in the past few years and the company's strong recovery in the past two years was not reflected in the current share price. "Packaging is also not a very sexy industry," he said.

The biggest shareholder is former chief executive Mr Paul Burke, who owns about 29 per cent of Ire-Tex group, while Alert Packaging - controlled by his brother, Mr Justin Burke - owns 7.8 per cent. Alert bought a substantial chunk of Ire-Tex shares in September 1999, a move that led to speculation that Alert might be building a platform for a bid.

After the poor results in 1997 and 1998, Ire-Tex has staged a creditable recovery and last year produced pre-tax profits of €2.4 million on sales of €33.1 million.