Barlo shareholders yesterday accused chief executive Dr Tony Mullins of attempting to pick up a bargain at their expense, writes Barry O'Halloran

Two weeks ago, Dr Mullins took the first step towards a management buyout when he made an approach that could lead to an offer of 30 cents a share, or €52.5 million, for the radiator and plastics group. He holds 2.3 per cent of the stock personally and through holding company Syden Investments.

Analysts subsequently said 50 cents a share would more accurately reflect the stock's value.

Following Dr Mullins's assessment of Barlo's prospects yesterday, one shareholder told yesterday's annual general meeting that the chief executive was attempting to "denude shareholders of their value".

"He [Dr Mullins\] is talking down the prospects of the company so you can give it to him in a panic because the market is going to fall in," the shareholder told the meeting. "But he would not want to buy it if he thought it was going to fall in."

Another speaker from the floor said the offer was derisory, insulting and opportunistic.

Shareholder Mr Owen Fox said Dr Mullins's position was untenable and argued that if he did not resign, the board should "resign him".

Barlo chairman Mr Niall Carroll reminded the meeting that neither Dr Mullins nor anyone else had made a formal offer. "We have had an approach that may lead to an offer, and that would then be considered by the board. The board may decide to recommend that offer or not," he said.

In his statement to shareholders, Mr Carroll said the board had appointed a committee consisting of himself and Barlo's other non-executive director, Mr John Farrell, to consider any offer that might emerge. The statement added that the board had appointed AIB Corporate Finance to provide it with independent financial advice.

Questioned after the meeting about the fact that Bank of Ireland owns his adviser, IBI Corporate Finance, and 14.5 per cent of Barlo through Bank of Ireland Asset Management, Dr Mullins said he was satisfied this did not create a conflict of interest.

Similarly, Mr Carroll said he was satisfied that there was no conflict between AIB's ownership of 5.5 per cent of the group and AIB Corporate Finance's role as board adviser.

He said that if Dr Mullins was to make an offer, it would be considered by all members of the board who were not party to it.