THE PHILIP Lynch-led Moonduster consortium has indicated to the board of Irish Continental Group (ICG) that it intends to "engage" with the other major shareholders of the ferry company with a view to "potentially bringing forward an offer" for the company.
"Shareholders should note that the approach is extremely preliminary in nature," the company said.
"In addition, there can be no guarantee that any discussions between Moonduster and the other major shareholders will result in an offer for the company."
ICG said no details have been provided to the board regarding the offer price at which a bid for the company might be proposed.
"The board has received no information regarding arrangements for the financing of such an offer or of the conditions to which the financing and making of such an offer may be subject.
"Consequently, there can be no certainty that an offer will ultimately be forthcoming."
The company said Moonduster indicated its intentions on Wednesday and sought six weeks to bring forward a potential offer.
This statement followed an egm of shareholders in Dublin yesterday at which Moonduster scuttled plans by the ICG board to initiate a share buyback programme and allot redeemable shares to investors.
Moonduster voted against both resolutions at the egm. It is understood that the consortium made it known to ICG on Monday that it was concerned about the timing of a possible share buyback, given the poor state of markets.
In a letter sent to ICG this week, Moonduster stated: "We believe that it would be sensible for the board to preserve capital within the business until there is more certainty regarding the financial and economic climate."
It opposed the allotment of redeemable shares on the basis that it was not in favour of the company having the power to disburse large sums to investors with remit to shareholders.
Earlier in the meeting, advisers to Moonduster - which comprises Lynch's One51 investment group and the Doyle shipping company - had sought to have the egm adjourned for six weeks, but this motion was defeated in a poll of shareholders.
The egm yesterday was attended by Mr Lynch and John Pope, a representative of property developer Liam Carroll, who owns 29.25 per cent of ICG but has not tabled an offer for the company.
It is understood that Moonduster is being advised by Davy, IBI Corporate Finance and JP Morgan Cazenove.
It is not clear whether Mr Carroll, ICG's biggest shareholder, or Eamonn Rothwell, the company's managing director who owns 16 per cent of the business and led an unsuccessful management bid last year, would be prepared to sell to Mr Lynch's consortium.
Moonduster paid up to €25.40 buying shares in ICG last year. The shares began trading yesterday in Dublin above €15.
Speculation has mounted in recent weeks that Mr Carroll might be willing to sell his ICG shares in light of the current global credit crunch and the decline in the Irish property market.
