The legal action by fruit distributor Fyffes against DCC over the timing of a major share sale is scheduled to be heard in the High Court on December 2nd.

The date for the insider-trading case was agreed between the parties and accepted by the trial judge, Ms Justice Laffoy, at a hearing in the High Court last week, Fyffes said yesterday.

The case, which is expected to last between three and five weeks, will pit what were once two of the state's most closely aligned companies against one another in an acrimonious dispute over the sale of DCC's stake in Fyffes at a profit of €85 million in February 2000.

Given the nature of the allegations, a settlement is not expected in advance of the hearing and the case looks set to be fought to a conclusion.

DCC said yesterday that the date was set after it recently made an application to the High Court in Dublin with a view to expediting the hearing.

Meanwhile, Fyffes said it was "pleased that its action is proceeding according to the expected timetable and, following a recent review by the board and its advisers, is even more confident of the strength of its case against DCC plc, Jim Flavin and the other defendants".

Fyffes announced in January 2001 that it planned to sue DCC, its chief executive, Mr Jim Flavin, and its Dutch subsidiary, Lotus Green, alleging they were aware of crucial, price-sensitive information when they sold 10 per cent of Fyffes in 2000.

At the time, DCC said it viewed "with incredulity this action by Fyffes" and that the action was "utterly without merit".

DCC's defence is expected to hinge on a number of factors, including share-option grants and sales by Fyffes' executive management in the weeks before the DCC sale and a trading statement issued by Fyffes at the end of January which gave an upbeat assessment of the company's prospects for 2000.

Separately, DCC announced the €14.5 million acquisition of the 48.5 per cent of Allied Foods it does not already own.

Allied Foods operates in the Irish chilled and frozen food distribution markets and has operations in Dublin and Cork.

"The acquisition of 100 per cent of the Allied Foods group strengthens the position of DCC Food and Beverage in the growing food service and chilled and frozen food sectors in Ireland," Mr Flavin said.

Allied Foods has operating profits of around €3.5 million a year, no borrowings and a modest cash surplus. DCC said the €14.5 million paid represents a multiple of 8.5 times operating profits.

Mr Mitchel Barry, who founded the company in 1989, will remain as chairman and chief executive while Mr John Casey will continue as head of Allied Logistics, its subsidiary which provides temperature-controlled logistics.

Goodbody Stockbrokers said the deal should add an estimated one cent, or 0.8 per cent, to full-year earnings per share.

DCC also said yesterday that it had completed the acquisition of British wine sales business Bottle Green for up to €37 million.