Glassmaker Ardagh has appointed a new director to safeguard the rights of small shareholders in the company, which is being taken private by the management headed by chairman Mr Paul Coulson and managing director Mr Eddie Kilty.

Mr Dan O'Donohoe's name emerged from a list presented by Ardagh management to the company's largest shareholders. His appointment had been promised by Mr Coulson at a contentious extraordinary general meeting last month. He is intended to be independent of both the company and its largest shareholder, the Coulson-controlled Yeoman Investments

Mr O'Donohoe (58), a former deputy chairman of Tullow Oil, is connected with Avenue Investments, the investment vehicle of the McGrath family, whose scion Mr Paddy McGrath founded Irish Glass Bottle.

Mr O'Donohoe is an investor in the company in his own right.

A report by Goodbody Stockbrokers this week suggests that Ardagh could net up to €36 million from the eventual sale of the 24-acre former Irish Glass Bottle site in Ringsend.

At the time of the closure of the plant, the report says "there was a lot of uncertainty about whether or not Ardagh would receive any proceeds from an eventual sale of the land".

However, it adds, "it would now appear that an arrangement could be made with Dublin Port to share in the spoils of an eventual sale. Ardagh could possibly receive up to 50 per cent of the proceeds of the sale of the site".

The firm also announced yesterday that it had been given a date for the court hearing of its petition for an order confirming the capital reduction that had been authorised by the e.g.m. The move is required to facilitate the demerger of the company's glass-making operations from the listed company.