Management at housebuilders McInerney has more than doubled its stake in the company in recent days.

The executive team, led by chief executive Mr Barry O'Connor, has moved to strengthen its position as two major shareholders liquidated their stakes in the company.

Bank of Scotland Ireland sold shares amounting to 24.7 per cent of the company late last week and Mr Pat O'Doherty's Harcourt Developments sold his 10.5 per cent holding in full on Tuesday.

Company management is now understood to own 16-17 per cent of McInerney, according to market sources. Previously, the executives and staff owned about 8 per cent between them.

The latest investment, which will have cost the management close to €8.65 million, has done little to dampen speculation that the company is eyeing up the prospect of a management buy-out (MBO).

However, the word in the market is that the latest flurry of activity, which has seen more than 35 per cent of the stock change hands in the past week, is at an end, with investors and the market assessing the new shareholder configuration before deciding on any further moves.

Analysts said the stock's recent advance from €2.38 a month ago to a close yesterday of €3.08 would also mitigate against any sudden move by management.

McInerney would not comment last night on the recent stock activity.

However, sources close to the company said it was pleased that the shareholder register had become more diversified as a result.

The builder holds its annual general meeting today and is expected to give an upbeat assessment of current trading in Ireland, Britain and Spain.

The sale of Harcourt Developments' holding will realise a substantial gain for Mr O'Doherty, who had built up a stake in the company at around €2.20 per share. At that time, there had been speculation that he would launch a bid for the company.

With the stock trading on Tuesday at €3, Mr O'Doherty will have made close to €2.75 million profit on his investment.

Apart from management, another leading purchaser of stock was existing shareholder Bank of Ireland Asset Management. It reported yesterday that it had bought 3.21 per cent of the company - just over a million shares - on Monday, making it by far the largest individual shareholder in the group with 15.22 per cent.