Vol. 541 No. 2
177 Mr. Flanagan asked the Tánaiste and Minister for Enterprise, Trade and Employment if consideration has been given to concerns regarding an apparent lack of transparency and openness in the matter of a take-over bid in respect of a company (details supplied); if she has satisfied herself that no oppression of minority shareholders exists; if matters have been dealt with in a satisfactory manner; and if she will make a statement on the matter. [21244/01]
I have received representations concerning the takeover of the company referred to. These representations have referred in particular to the decline in the value of the company's share price and a belief that it was improper for the chief executive to seek to take over the company at its reduced valuation.
I have received no information relating to this transaction to indicate that there has been any malpractice or that the company or its directors have failed to carry out their statutory duties under the Companies Acts.
The decline in the company's share price does not of itself suggest or prove malpractice. A significant decline in share price has happened in many other cases. The recent sharp decline in the value of many technology stocks is just one such example.
The fact that the company's chief executive is seeking to takeover the company equally does not of itself suggest wrongdoing. Management buyouts, MBOs are a quite common feature of commercial enterprise.
The acquisition of the company did not require regulatory clearance by me under the mergers legislation as the relevant financial thresholds were not met.
