Property developer Sean Dunne yesterday ruled out making a bid for Jury's Doyle group but said that he could stay as a minority shareholder in the company and take a seat on its board.
The group yesterday completed the sale of two hotels on a five-acre site in Ballsbridge, Dublin to Mr Dunne for €260 million.
Jury's will begin seeking offers today for the Berkeley Court, another property on the same site, which is expected to fetch between €100 million and €110 million. Mr Dunne looks to be in pole position to buy this also.
Mr Dunne holds 28 per cent of the Jurys Doyle group, which is the subject of a €1.25 billion takeover bid by members of the Doyle family, who control 56 per cent of it through their vehicle, JDH Acquisitions.
Yesterday, there were further pledges of support from directors for the Doyles' €18.90 a share bid which could potentially increase their holding to 65 per cent.
The Doyles intend to delist the company from the stock exchange and take it private.
Mr Dunne said he was not going to take them on with an offer of his own.
"We wouldn't be bidding for a company where other shareholders who have bid for it have acquired 56 per cent of it," he said. "Not unless they invite us to bid for it, which is unlikely."
He added that he was keeping his options open on what he would ultimately do with his 28 per cent stake.
However, he made it clear that he was interested in remaining in the company as a minority shareholder.
"I'm in a position to stay in it for the long term," he said. "I know the value of the company because I looked at it very closely, and to me there's enhanced value for the shareholders at €18.90."
Mr Dunne stressed that if he did stay in the company, he would accept that the Doyles as majority shareholders would be in control and said he would back them as long as their decisions made economic sense.
But he added that he would seek a seat on the board to protect his interest.
Mr Dunne has been building his stake in the company for several months, and has paid as much as €19.50 a-unit for some of his shares. It was always assumed that he was primarily interested in its landbank.
He plans to develop a high-rise apartment complex on the Ballsbridge site. This would make the Berkeley Court a particularly attractive property from his point of view.
The tendering process will be private, according to Jury's chief executive, Pat McCann. He said that the company would invite those who bid for the Ballsbridge site to make offers for the Berkeley Court.
Depending on the price and the status of the takeover bid, a sale could require the approval of an extraordinary general meeting (egm) of shareholders.
Jury's Doyle also intends selling the Montrose Hotel, situated on the Stillorgan Road to the south of Dublin's city centre. Mr Dunne said yesterday that he was not interested in this property, as it's "too far from Ballsbridge".
