Shares in Trintech surged by 20 per cent yesterday following the Dublin-based software firm's announcement that it had received final approval to start a $5 million (€5 million) share buy-back plan.

The ruling allows Trintech to start a buy-back programmeit first announced in July to prop up its share price which recently hit a record low of 83 cents on the Nasdaq.

The plan had initially been held up by the Irish Takeover Board because Trintech's co-founders, Mr Cyril McGuire and Mr John McGuire, both own more than 30 per cent of the company's shares.

The buy-back plan would significantly increase their shareholdings above this figure, and if it were judged the two brothers were acting in concert they would have to make a mandatory bid for the firm.

But the takeover panel ruled yesterday that the brothers were not acting in concert and gave the go-ahead for the buy-back plan. It followed a decision by Mr John McGuire to leave the Trintech board and step down as an executive at the e-payments firm.

In addition, there has been speculation about the ownership of a company called Instove. Trintech has been unable to disclose the ownership of Instove, a firm which holds almost 10 per cent of Trintech share capital.

This company is in turn owned by two Jersey-based discretionary trusts, called Hacke Trust and Belte trust. Messrs McGuire have both disclaimed any beneficial interest in the Instove shares.

Trintech said it now expected to begin the buy-back in December following publication of its third quarter results on November 27th.

The announcement sent the company's shares surging more than 20 per cent higher yesterday. They closed up $0.24 at $1.60 on the Nasdaq.