Desmond raises Barlo stake to near 18%
12/03/2004 - 08:31:31Financier Dermot Desmond has increased his stake in management buyout target (MBO) Barlo to almost 18% after the purchase of another 1.75m shares at €0.42 per share yesterday.
On February 10, Barlo's independent directors said they would be recommending a €0.40 per share cash offer from a management team led by chief executive Tony Mullins.
However, Desmond is now in a position to block the MBO if he can gain support from investors holding 2.2% of the company's shares.
On Wednesday Desmond bought UK investment house Gartmore's entire 3 million share holding in Barlo. Previously Gartmore had written a non-binding letter of support for Mullins MBO.
