IWP deputy chief executive Mr Bernard Byrne last night resigned less than a week after his offer to buy the company was rejected by the board.

His departure came on the day former Golden Vale chief Mr Jim Murphy took over as chief executive from founder and dominant shareholder Mr Joe Moran, who remains as chairman of the group. He replaces Mr Frank Plunkett Dillon, who becomes deputy chairman.

IWP issued a brief two sentence statement to the stock exchange, thanking Mr Byrne "for his contribution to the company during the last five years" and wishing him the best for the future. It said his resignation was effective immediately.

Mr Byrne's position was seen as untenable following the swift rejection by IWP's board of a 44 cent per share offer from a group he headed for the company. The committee examining the MBO offer, which included Mr Moran, said it did not reflect "the inherent value of the group".

However, people close to him said the timing of yesterday's statement was a surprise. Only 24 hours earlier, Mr Bryne said he would talk to Mr Murphy to "ensure a smooth hand-over".

The former ESB International executive, who was also finance director with the company which produces and distributes, cosmetics, personal care products, household products and adhesive labels, had overseen a radical management restructuring at the group in the past year.

Mr Byrne had expressed disappointment at the rejection of his group's offer which he said represented "fair value". The group had been trading at an average of 23 cents in the month before the offer was made.