Ireland chief defends Blue Oar deal
THE boss of stockbroker WH Ireland denied today ceding control of the company as a result of the planned acquisition of rival Blue Oar.
Since the deal was revealed there has been some disquiet among staff and investors over the size of the stake – 32% – in the enlarged group Blue Oar owner Evolve will hold.
One concerned investor told TheBusinessDesk: “This a reverse takeover of Ireland in all but name – Evolve will have control.”
Richard Ford, chief executive of WH Ireland, which has an office in Leeds, said such opinions were “extreme and cynical”, and said the deal was in the best interests of all concerned.
“You can look at these things in all sorts of ways, and that’s an extreme view and one I don’t share. You could for instance see this as a £10m rights issue at 50p a share when our shares are trading at 75p if you wanted to.
“Evolve is not getting board control of the business and the synergies between ourselves and Blue Oar are compelling.”
Mr Ford, who succeeded long-standing chief executive Laurie Beevers at the helm of the company said he could understand some concern among staff at a time of major change: “Under these circumstances staff are always nervous, but there’s no need for them to be nervous, this is a positive outcome.”
He said too he had “no immediate plans” to change the name of the enlarged group.
The proposed merger will create the largest broker on the AIM market and also a powerful regional stockbroker – Ireland is strong in the North West, while Blue Oar is a key player in the South West.
