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Blue Oar calls off WH Ireland bid

Kevin Feddy
9/ 5/2008

SHARES in WH Ireland slumped after potential suitor Blue Oar abandoned its interest in the Manchester-based financial services group.

London-based broker Blue Oar made a preliminary approach for the business last month, indicating that it would pay around £20m for the business.

But in a stock market statement, Blue Oar said its board had decided to walk away.

"The decision to withdraw follows the refusal of the board of WH Ireland to meet and discuss any proposals, despite repeated efforts to engage with them," the statement added.

Blue Oar said it did not believe a hostile bid would be beneficial for either party, even though its board felt combining the two firms would create significant synergies and deliver value to shareholders.

"Blue Oar believe there will be other opportunities, which can be completed on an agreed basis, that will progress its strategy of creating a specialist investment bank with long-term, stable earnings growth," it said.

Shares in AIM-listed WH Ireland, which had surged in recent weeks following revelations about Blue Oar's interest, plunged 6.5 per cent, or 7.5p, to 108p.

WH Ireland, which has its headquarters in St James's Square, received several takeover approaches late last year but rebuffed them, too, after failing to agree terms.

It announced the approach from Blue Oar on April 25 but said it did not believe the outline proposal was in shareholders' best interests. Chief executive Laurie Beevers said the approach was unwelcome and would be a `massive distraction' to the business.

However, that decision was slammed by Knox D'Arcy, a fund manager with an activist stake in WH Ireland.

Knox D'Arcy blasted the board for rejecting Blue Oar's move, accusing it of acting in its own interests at the expense of shareholders.

Meanwhile, WH Ireland has found itself at loggerheads with investors over another issue - a deal to issue new shares to a consortium of high-profile businessmen, including former Tory treasurer Lord Marland and Carphone Warehouse co-founder David Ross. Despite a revolt by shareholders at the annual meeting last month, the board is pressing ahead with the plan.

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