ALL EYES FOCUSED ON CARROLL'S STAKES IN LISTED FIRMS - Since Ulster Bank moved to block the voting rights on 15.9% of developer Liam Carroll's shareholding in Greencore, what happens to his shareholdings in the food group, and other companies in which he has a share, is under the spotlight. Three years ago Liam Carroll bought Dermot Desmond's 21.5% stake in Greencore for €170m. Afterwards he built that stake up to 29.5%. He also owns just over 29% of Irish Continental Group, and also has a stake in home building firm McInerney. All of these listed firms have land banks. He also famously lost a substantial sum when he sold 31 million Aer Lingus shares last year.
Oliver Gilvarry, from Dolmen Stockbrokers, says Liam's Carroll's investments have fallen massively in value since he bought them, with his Greencore stake hitting highs of about €5 before falling back to trade as low as 70 cents. It has since moved a little higher to trade at about €1.27 this morning. The analyst says the issues over Liam Carroll's stake have weighed on the share price in recent weeks and the announcement by Ulster Bank saw the share price fall back again. He says that while Greencore has a very good underlying business with a strong balance sheet, good cash flows and strong prospects for growth, he adds that the Carroll issue has held back the stock.
Mr Gilvarry says there were reports a number of weeks ago that an investor group was interested in the entire Carroll stake in Greencore and was willing to pay about €1.02 per share. He says this shows that there are buyers out there at certain prices.
The analyst says the Irish market has found itself out of favour with international investors. He says that if the ICG shares came to the market, it could be expected that one of the two parties that had been involved in the chase for the ferry group would be interested in picking them up. However, he believes it would be more difficult to get Irish buyers for the Greencore shares.
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MORNING BRIEFS - From chairing a booze company, to an Irish bank, to a cigarette company - Richard Burrows knows how to choose them. He has just been appointed chair of British American Tobacco. Among other brands BAT makes Lucky Strike and Dunhill cigarettes.
*** The world's biggest technology company, HP, says personal computer sales rose in the past three months. Though overall revenue dipped, the company said business is stabilising. A 2% rise in PC shipments helped drive results which beat expectations. HP is the world's largest technology company in terms of revenue and the largest global PC maker. All eyes have been pointed in its direction for hints of a recovery.
*** The IMF yesterday said the global economic recovery has begun but sustaining it will require refocusing the US toward exports and Asia toward imports.
*** On the currency markets this morning, the euro is trading at $1.4090 cents and 85.58 pence sterling.
