Mr Dermot Desmond continued to make his presence felt in management buyout (MBO) target Barlo yesterday when it emerged that his stake in the company had risen close to 13 per cent.

This leaves the financier just 7 per cent shy of controlling sufficient shares to block the buyout bid, which is being led by the firm's chief executive, Dr Tony Mullins.

A Stock Exchange notification revealed yesterday that Mr Desmond's IIU was behind the purchase of 3.7 million Barlo shares on Tuesday.

The shares were bought at 42 cents, which is two cents higher than Dr Mullins's offer for the company.

Mr Desmond has spent some €4 million building his stake in Barlo since the MBO offer was tabled on February 10th, with Tuesday's purchase his largest to date.

His holding has risen from about 6 per cent to 12.94 per cent since the 40 cent offer emerged, and the bulk of his purchases have been made above that level.

Market-watchers take this to suggest that Mr Desmond is holding out for a higher offer. Some analysts have indicated that a price between 45 and 55 cents could be more appropriate, but Dr Mullins has insisted that these levels do not take account of the company's debt burden.

Dr Mullins is understood to have secured irrevocable acceptances for his offer in respect of 28 per cent of Barlo shares, with letters of support received in respect of a further 8 per cent.

The MBO offer document is due to be sent out to shareholders this week, with a 60-day acceptance time-line to begin running immediately thereafter.

Volume eased a touch in the company yesterday, with less than a million shares changing hands.

The stock closed at 41 cents, down one cent on the day.