Riverdeep buyout clears further hurdle

Shareholders in Irish-based educational software group Riverdeep Plc have approved a resolution necessary for a possible management…

Shareholders in Irish-based educational software group Riverdeep Plc have approved a resolution necessary for a possible management buyout of the company.

At a general meeting in Dublin, 96.8 per cent of the firm's shareholders voted in favor of a resolution approving management arrangements - including future share options.

"The vote was an indication of support, because if the resolution had been defeated, the MBO (management buyout) would have lapsed," a spokesman for the company said.

The MBO offer from the Hertel consortium led by Riverdeep chief executive Mr Barry O'Callaghan, valuing the company at $376 million, requires 80 per cent acceptances to go through.

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Last month, Riverdeep said it had acceptances in respect of 69 per cent of the company's share capital, including 25 per cent held by Hertel.

The next closing date for acceptances is March 10th.

After a volatile run on stock markets last year, shares in Riverdeep, which supplies US schools with Internet and CD-ROM learning aids, fell from a peak of €5.42 last July to a low of 75 cents shortly before the MBO approach in January.