MEAT PROCESSING: Two south Kerry businessmen have offered over €1 million (£787,000) for the Kerry Beef and Lamb company, which has been in receivership since early October.

The bid by Mr Robert Noonan and Mr Michael (Haulie) O'Shea is the preferred option of three bids on the table, as far as farmers, who are owed €3.5 million, are concerned. More than 350 farmers are owed money.

The two men are in negotiations with the receiver, Mr Michael Daly of Grant Thornton in Limerick, and with local Irish Farmers' Association (IFA) representatives.

Acceptance of their offer is conditional on its being the best available to the receiver, and on their reaching accommodation with the farmers, as well as other sole traders owed money.

There are at least two other offers for the plant, one from Honey Clover, the Kilkenny/Kildare-based meat processor, and the other from a consortium of meat processors.

Mr Flor McCarthy, chairman of the Kerry county executive of the IFA, yesterday called on Anglo Irish Bank to make a "gesture of goodwill" and forgo the interest and some of the £600,000 (€762,400) to £700,000 capital it was owed by the firm.

"They won't be able to realise their money if we don't get this thing moving. "That, plus the receiver's costs, are blocking the sale of the plant," he said.

Around 80 workers lost their jobs when the firm collapsed. Further movement on the situation is expected next week when IFA president Mr John Dillon visits Tralee to try to break the three-month stalemate.

It is understood that Mr Noonan and Mr O'Shea made their offer before Christmas. The other offers were made earlier.