DCC, the business support service group being sued for insider dealing by Fyffes, has clarified the legal positions of two investment companies that are also suing it.

Eagle Star and Hibernian Investment managers began separate legal proceedings against DCC and its chief executive, Mr Jim Flavin, this week. Both companies lost money after buying Fyffes shares from DCC when it disposed of its 10 per cent stake in February, 2000.

Mr Flavin was a director of Fyffes at the time and the company alleges he received management information indicating difficult trading conditions ahead of the decision to sell the shares.

According to DCC, neither company is alleging unlawful dealings - the legal term for insider dealing - against it or Mr Flavin.

DCC said the position of the two investment houses - based on their affidavits - is that, only if Fyffes is successful, will they seek compensation from DCC. The companies have taken their action "to preserve their positions", according to DCC.

Eagle Star and Hibernian have not made any comment but, according to DCC, they approved a statement clarifying their legal action issued by DCC.

Eagle Star's Originating Notice Of Motion - which sets out the relief that it is seeking from the court - seeks an order for DCC to pay compensation because the sale of the Fyffes shares was an "unlawful dealing" under the terms of the Companies Act. The notice of motion, which was the basis of last Monday's application, is grounded on the affidavit referred to in the DCC statement.

Eagle Star bought some 3.5 million Fyffes shares on February 3rd and 9th, 2000, and would be sitting on losses of almost €7 million at today's prices. Eagle Star says it sold 1.8 million shares at a profit almost immediately.