Unions at Arnotts, the Dublin department store, said they were assured the company's pension fund would not be tapped to fund expansion, at a meeting with chief executive Mr Seamus Duignan yesterday.

Mandate and SIPTU held discussions with Mr Duignan as the board of directors considers a €227 million takeover offer ahead of Friday's stock exchange deadline.

Worker representatives will today seek further assurances from the pensions fund trust, which holds a 13 per cent stake in the firm. With three of the five trust members serving as directors, unions say it is important it is seen to be acting in the best interests of staff. Mr Duignan also undertook to keep employees informed of developments following claims that they had not been made fully aware of expressions of interest in the company, Mandate said.

A spokesman for Carrgran, the consortium which has tendered for the store, meanwhile said it was disappointed the Arnotts board had not responded to its request for a further meeting. "We are endeavouring to engage the company and are disappointed as we believe we have put forward a very realistic proposal," he said.

A spokesman for the board said it was assessing Carrgran's offer and did not see any merit in a another round of talks ahead of this week's deadline.