Sean Dunne has been told to sell at least two million shares in Jurys Doyle because he breached takeover rules when building up an 18.23 per cent stake last week.

The instruction raises the prospect that Mr Dunne could end up selling some stock to Liam Carroll, another property developer.

Mr Carroll confirmed in a statement to the Irish Stock Exchange yesterday that he was the mystery buyer who had been active in Jurys on Tuesday and Wednesday.

His purchases, which cost about €75 million, left him with a 6.67 per cent stake in the hotel group. He paid an average of €17.82 for his shares, buying from a range of institutions. Another 600,000 shares, or almost 1 per cent of Jurys, changed hands yesterday, and no buyer was disclosed.

While Mr Carroll is thought to have no interest in mounting a takeover bid for Jurys, his presence on the share register will not have gone unnoticed within the hotel group's board.

Known as the biggest developer of properties in the State, the media-shy Mr Carroll is also remembered for wresting control of Dunloe Ewart from Noel Smyth in a protracted process three years ago.

Sources in the market suggested yesterday that Mr Carroll's main interest in buying into the stock lies in a desire to win control of the firm's properties.

Jurys has already agreed to sell almost five acres at Ballsbridge in Dublin to Mr Dunne for €260 million, but is planning to put two more properties up for sale in the near term.

The first of these - the two-acre site of the Berkeley Court in Ballsbridge, Dublin - will be of most interest to Mr Dunne because it sits alongside the site he has already agreed to buy.

The second - the nearby Montrose Hotel - could be sold to a hotel operator or a developer.

The Takeover Panel said yesterday that Mr Dunne broke its rules because he bought more than 10 per cent of Jurys in a seven-day period and, by doing so, built a position of more than 15 per cent.

In a statement to the Irish Stock Exchange, the panel directed Mr Dunne to sell enough shares to put himself beneath the 15 per cent threshold.

The panel did not outline a timeframe for the required disposals because this would have been market-sensitive.

The knowledge that some of Mr Dunne's stock would be coming on to the market weighed on Jurys shares yesterday however.

The stock closed at €17.75, down 10 cent.

Mr Dunne paid an average of €17.85 for his stock, and would thus register a loss by selling at current levels, particularly after stamp duty and dealing charges have been considered.

The Takeover Panel made clear that he must sell to "unconnected" parties but did not rule out the possibility that he could buy more shares at a later date.

As things stood last night, there was no takeover approach on the table at Jurys.

Quinlan Private and Paddy Kelly continue to be regarded as potential offerors by the Takeover Panel, however.

Simon Reuben, who backed the failed Precinct approach, also remains in the background as a possible bidder.