THE industrial holding company DCC has run into further difficulty in its bid to takeover Flogas, as a second institution yesterday publicly rejected its offer.

Friends Provident, a minority shareholder in Flogas, has joined Scottish Provident in dismissing DCC's offer of £2.75 per share for the company.

Describing its bid as "opportunistic", Friends Provident's chief fund manager, Mr Pramit Ghose, said it would not be selling its shares to DCC at that price.

Its offer of £2.75 per share is "very low" he said in an RTE radio interview, suggesting that a price of between £3.25 and £3.50 per share would more accurately reflect the value of Flogas. "It's a very cheap price to give up the company," he stated

Last week, Scottish Provident chief fund manager, Mr John Lawrie publicly criticised DCC's offer. Both fund managers said they would be disappointed if the independent Flogas directors recommend the DCC offer. DCC has said the offer will not be increased "under any circumstances".

Market sources have speculated that DCC could, however, yet come to an agreement with Scottish Provident, which holds 8 per cent of Flogas shares, if it paid a higher dividend in the current year.

Such a move would mean that the institutional shareholders would end up with more cash if it proved acceptable. Flogas independent directors, Mr Joe Moran, Mr Brian Davy, Mr Eugene Quigley and Mr Dermot Moore, would have to approve this payment and are expected to discuss this option.

Despite the controversy, DCC continued buying Flogas shares in the market yesterday, acquiring another 78,438 shares at 275p, to bring its holding to 78.1 per cent.

Under Stock Exchange rules DCC can continue buying Flogas shares in the market provided it does not offer less that the 275p per share it offered minority shareholders last Friday.

DCC also informed the Stock Exchange that "due to incorrect information given to it regarding market purchase" the company overstated the number of shares it bought on Friday.