Dáil Éireann debate -
Thursday, 13 May 1993

Vol. 430 No. 7

Written Answers. - Government Stockbrokers.

Thomas P. Broughan

Question:

60 Mr. Broughan asked the Minister for Finance if Davy Stockbrokers Limited have acted for his Department in the past; if so, the occasions when they acted; and if there is any evidence that Davys or other Government stockbrokers sold off Government shares to closely-related companies in the past.

Minister for Finance (Mr. B. Ahern)

Prior to the most recent sale of 25.4 million shares in Greencore plc, Davy Stockbrokers had acted for my Department on a number of occasions in the past. These were: (i) the original flotation of Greencore plc in April 1991; (ii) as one of a number of agents in the Irish Life flotation in 1991; (iii) as agent for the placing of 12.5 million shares in Greencore plc in February 1992; (iv) as one of the agents in the recent disposal of 18 per cent of the remaining shareholding in Irish Life.

In all cases, except in the third case referred to above, the shares were offered on an open and competitive basis in which any relevant interested party was able to buy. In relation to the sale of 12.5 million shares in Greencore plc, I decided to accept a bid from the Investment Bank of Ireland for the placing.

In all instances the Investment Bank of Ireland, which like Davy's is a member of the Bank of Ireland Group, bought shares. Investment Bank of Ireland is one of the largest firms of investment managers in the Irish market and as such could be expected to be a buyer of the shares.

These disposals of Government shares were successfully executed to the satisfaction of the market.