Carroll's 29pc stake in ICG is finally placed on the market
Wednesday November 18 2009
Embattled developer Liam Carroll's 29.8pc stake in Irish Continental Group (ICG) was placed on the market yesterday afternoon at €12.30 a share -- erasing fears that loans underpinning the stake would end up in the National Asset Management Agency (NAMA).
Goodbody Stockbrokers managed the sale for Allied Irish Banks, which has effectively been in control of the position since it appointed a receiver to the developer's South Morton investment vehicle, which held the shares.
The bank had lent Mr Carroll up to €175m to build up his stake in 2007. However, the placement of the stock only generated €87.8m, meaning AIB most likely faces having to write down half the value of the loan.
Still, sources close to Mr Carroll have indicated to market participants they are aggrieved that the stock was placed at a discount to the market price. They have argued that the bank had a duty of care to mitigate losses on his loans.
Shares in the group closed yesterday down 4.1pc at €12.85.
It is also understood that representatives of a potential 'white knight' had been in contact with AIB about the stake in recent weeks, but the bank was concerned about prospects of executing a deal with that party, believed to be based in the UK.
Market sources also said it would have been hard to place such a large stake without offering some discount to whet the appetite of a broad range of investors. The stock was placed among 30 institutions -- comprising both clients and non-clients of the broker.
ICG had become a very illiquid stock since it was first 'in play' two years ago and almost 70pc of the stock was mopped up by three distinct, sizeable blocs of shareholders.
The remaining holding had largely become the plaything of hedge fund-type investors, who have been hopeful of making a gain out of corporate activity in the group.
ICG was the subject in 2007 of two abortive takeover attempts -- by a management buyout team led by chief executive Eamonn Rothwell and the so-called Moonduster consortium, headed by Philip Lynch.
Both sides had enough stock to block the other -- and Mr Carroll was in a position to stand in the way of either getting a deal over the line.
A second attempt to buy the group earlier this year -- as former rivals Mr Rothwell and Moonduster joined forces -- also fell through, partially because it failed to secure the backing of Mr Carroll.
Observers said yesterday that the placement of Mr Carroll's holding may improve the chances of perennial takeover talk surrounding the group finally resulting in a deal in the near term.
- Joe Brennan
Irish Independent
