Riverdeep surges on O'Callaghan MBO
Monday, 11 November 2002
Riverdeep shares closed up sharply on news that chief executive Barry O'Callaghan has launched a bid to take the company private.
In an announcement to the stock exchange this morning Riverdeep said discussions between the independent directors and O'Callaghan were at a preliminary stage.
Shares in the company slumped last week despite an announcement that revenues had doubled in the last quarter. A report by Merrion stockbrokers was strongly critical of the management's poor communication with financial markets.
Riverdeep shares closed up 57 cent to €1.32 in Dublin today.
Over the weekend it was reported in several papers that US hedge fund, Rocker Partners, wanted to meet the management of Riverdeep following concerns expressed that the stock was being sold short by the fund and criticism of the way the company reports to the market.
Bank of Ireland Asset Management disclosed last week that it now owned 27% of the company, which will give it a large say in whether O'Callaghan's bid will suceed.
According to the company's most recent annual report Barry O'Callaghan owns 5.5% of the company, and founder Pat McDonagh owns 23.1%.
- Business Today: John Coolican of Merrion says the involvement of 23% shareholder Pat McDonagh will be crucial to the MBO's success
