ALLEGRO, the distribution company thought to be close to finalising the acquisition of Lyons Irish Holdings, has hired a new group marketing director.

Mr Terry Buckley is leaving pharmaceutical distribution group United Drug on March 31st to take charge of marketing at Allegro.

Allegro chief executive Mr Dermot Divilly and finance director Mr Greg Lawless were not available for comment yesterday, but it is thought the sale of Lyons Irish Holdings by Allied Domecq may be close to a conclusion.

If Allegro is successful in buying the 75 per cent of Lyons held by Allied Domecq, it will be required to make a mandatory bid for the remaining 25 per cent held mainly by institutional shareholders.

It is understood the independent directors of Lyons have already engaged the services of a corporate finance company to advise the board on any bid. The directors will, on the basis of this advice, give a recommendation to shareholders on any bid accepted by Allied Domecq.

If successful in acquiring Lyons for an estimated £50 million net of the £46 million cash on Lyons' balance sheet, Allegro is expected to make an early move to join the stock market, raising fresh funds in the process.

Such a move would undoubtedly be welcomed by Allegro's institutional shareholders which supported the 1994 management buy out of the company.

It is thought likely that most institutional shareholders would support a share issue at the time of a flotation.

Final bids for Lyons were lodged with Allied Domecq's adviser, SBC Warburg, in early November. IAWS, Unilever and Fitzwilton are also linked with a possible bid for Lyons but it is thought that Allegro is the front runner.

Lyons and its leading tea brand would be a major addition to Allegro's distribution portfolio.