Four ICG directors may quit if rival bid succeeds

Eamonn Rothwell and at least three other members of the Irish Continental Group (ICG) management buyout (MBO) team plan to leave ICG if the One51 Capital/Doyle consortium is successful with a bid for the ferry company.

It is understood that Mr Rothwell, who is ICG's managing director, will be joined in leaving the company by ICG finance director Gearóid O'Dea; marketing director Tony Kelly; and John Reilly, operations director of Irish Ferries. The intentions of Thomas Corcoran, ICG's company secretary and the fifth member of the MBO team, are not clear.

It is understood that the departure of Mr Rothwell and his colleagues could also heavily influence the decisions of other members of ICG's management team.

Reports had suggested that the One 51/Doyle group, which owns 20.5 per cent of ICG's equity, was set to make an offer to Mr Rothwell to remain with the company if it succeeds in acquiring the business. It is not clear if the consortium has secured the services of a new management team in the event of its bid succeeding.

The consortium is expected to lodge a bid for ICG before the end of this week of at least €20.75 a share. The offer is believed to be backed by Bank of Ireland and Halifax Bank of Scotland.

The One51/Doyle group was due to complete its due diligence process early this week, having been granted a four-week period for this by ICG's independent directors on April 13th.

The MBO team led by Mr Rothwell lodged a bid for ICG on March 8th, offering €18.50 a share through a firm called Aella. The €471 million bid is backed by AIB.

Mr Rothwell, a former stockbroker, joined ICG in 1992 and has been a major force in shaping the company's strategy since then.

The MBO team could launch a counterbid to the offer made by the One 51/Doyle group, although this is thought to be unlikely.

Mr Rothwell would be one of the main beneficiaries of an offer from the consortium being led by Philip Lynch. He owns 2.1 million shares, which would be worth €41.5 million if the One 51/Doyle group offers €20.75 a share. He would also be likely to benefit from a significant payout on the termination of his service.

Using the same valuation, Mr O'Dea would earn about €3.7 million; Mr Kelly would receive €821,000; and Mr Reilly would get about €1 million.