A war of words broke out yesterday between the Philip Lynch-led consortium eyeing a bid for Irish Continental Group (ICG) and the company and its independent directors.
In a statement to the Irish Stock Exchange, the consortium said that the due diligence process, which began on April 13th, "has been severely hampered by delays" by ICG in providing "sufficiently detailed information, particularly financial information, which is essential to completing" its process.
"This is despite the fact that various processes have been put in place with the independent directors of ICG to guarantee the confidentiality of any information disclosed," the statement added.
The consortium, which comprises the Lynch-led One51 Capital and the Cork-based Doyle Group, said it was "fully committed" to moving the process towards a possible offer to acquire ICG at a price of not less than €20.75 per share.
Separately, it has emerged that FBD, a leading Irish insurer, is in talks to acquire an equity stake in One51 Capital, which holds shares in both ICG and IFG, a financial group. Mr Lynch is a director of FBD.
Other groups are also believed to have approached One51 about buying an equity interest.
In response to the claims by the consortium, the independent directors said "significant and appropriate levels of confidential information and assistance" had been provided to the consortium and would continue to be provided.
A source close to the directors said they were "surprised" at the statement issued, and questioned why Mr Lynch and his colleagues had not raised the matter with the takeover panel.
It is understood that the consortium has sought full management accounts from ICG, but that it has so far received "summary" management accounts.
ICG's management team, which is led by Eamonn Rothwell, is also said to have agreed to make "detailed presentations" to the consortium and offered dates for this week and next.
Mr Rothwell and other members of the management team have already tabled an €18.50 a share offer for ICG.
A source close to the consortium said that in the interests of equity, the independent directors should make the full management accounts available to the consortium, thereby giving Mr Lynch and his colleagues the same level of details as is available to the management buyout team.
It is believed that the independent directors are unwilling to do this in the absence of a firm bid from the consortium.
A suggestion that the consortium led by Mr Lynch was "cooling" its intentions towards ICG was dismissed. It has spent €98 million buying a 20.5 per cent stake in ICG.
A rumour that Mr Rothwell was finalising a higher bid for ICG was similarly dismissed.
ICG's shares closed five cent down yesterday at €20.65.
