Stock exchange stays silent on approaches from DCC

The Irish Stock Exchange maintained its silence yesterday in the wake of the insider dealing case taken by Fyffes against DCC.

During the case a number of facts were disclosed concerning how the exchange reacted to approaches from DCC after DCC discovered the exchange had forwarded a file to the Director of Public Prosecutions.

However a spokesman for the exchange said it had no comment to make on the case, which concluded on Wednesday. A comment may be made at a later date, he said.

Ms Justice Mary Laffoy ruled Wednesday that there had been no insider dealing as alleged by Fyffes, as the information which had been in the possession of DCC managing director Jim Flavin, was not price-sensitive.

During the trial tapes made by Davy stockbrokers when Mr Flavin was discussing a possible share sale with brokers were played to the court.

It emerged that a transcript of the conversations had been given to Mr Flavin by Kyran McLaughlin of Davy around the time the exchange was investigating the sales.

A spokesman for Davy said Mr McLaughlin would not be commenting.

When DCC learned by way of a newspaper report that a file had been sent by the exchange to the DPP, it initiated a campaign to have the exchange influence the DPP against a Garda inquiry.

Details of the campaign by DCC were revealed during a Supreme Court hearing concerning a side issue to the main insider dealing clash between Fyffes and DCC.

The Supreme Court said DCC was within its rights to approach the exchange, as the exchange had not given the company an opportunity to respond to its report before sending it to the DPP.

It emerged that at one stage the chief executive of the exchange, Tom Healy, suggested the company forward information to the exchange which the exchange would only forward to the DPP if it believed it would be helpful to DCC's case. This proposal was never put into action.

The appropriateness of Mr Healy's suggestion has been queried, given the exchange's role as a regulator of the market.

A note taken during one meeting between advisers to DCC and Mr Healy, recorded Mr Healy as saying he would be happy to "see the whole issue go away".