Trintech is awaiting approval from the Irish Takeover Panel before proceeding with plans to buy back up to $5 million of its own shares. The software company said it was in the process of securing approval from the panel to buy back the shares without triggering the requirement for the largest shareholders to make a mandatory bid for the company.

Chairman and chief executive Mr Cyril McGuire said yesterday that Trintech expected such approval to be forthcoming shortly. "We remain steadfastly committed to the buyback as we believe the company's shares are significantly undervalued in the current market and we await final approval from the Irish Takeover Panel to commence the programme."

Mr McGuire and his brother John control 31 per cent of Trintech shares and, given their relationship, are considered to be technically acting in concert under takeover panel rules.

The buyback - which analysts estimate represents around one-third of the company's market capitalisation - would also increase their relative percentage ownership of the shares, triggering the need for an outright bid.

Building materials group Kingspan recently suspended its share buyback after the Takeover Panel ruled that it needed shareholder approval before purchasing any more of its own shares.

Its position was similar to Trintech's as its chairman and chief executive Mr Eugene Murtagh owns nearly 24 per cent of the company. Taken with other directors' holdings, the board controls more than 30 per cent of the company's shares.

Trintech shares finished at $1.03 in New York yesterday, a rise of over 8 per cent on the day. This takes them back above the critical $1 level. If the shares trade below $1 for 30 to 90 days, Nasdaq can ask the company to delist.