Shares in South Wharf lost nearly 12 per cent yesterday as the market reacted with disappointment to the news that the High Court had ruled against it in its bid to change the use of its Ringsend property.

The company, which was left over when Mr Paul Coulson spun off the glass interests of Ardagh in 2003, must now decide whether to appeal the High Court decision to the Supreme Court.

South Wharf had been seeking to change the use of the facilities it leases at Ringsend from glass manufacturing to port warehousing but had failed to win the consent of its landlord, Dublin Port, which prompted the legal action.

Shares in the company, which have risen strongly since the start of the year amid hopes of a positive outcome to the court case, lost 35 cent, or 11.7 per cent, to €2.65 yesterday.

The company said it would now "consider in detail the implications of the High Court decision and will communicate with shareholders in due course".

Aside from an appeal, it may also consider a more detailed application to Dublin Port, given that the High Court judgment criticised the company for failing to give Dublin Port all the details to which it was entitled.

South Wharf could also decide to pursue a legal appeal and fresh negotiations in tandem.

Meanwhile, a spokesman for South Wharf said there was no question of its surrendering its long-term lease on the Ringsend properties where it intends to continue its glass-related activities. "It should be noted that there is no minimum level of activity specified in such leases," the company said.

South Wharf's business consists of agency sales of product sourced from other manufacturers, including the plants of Ardagh Glass.