Troubled net travel firm confirms offer

28 Jul 2005

Kerry-based online travel firm CNG has confirmed an offer has been made to acquire the company. However, it said it is treating the approach tentatively because of its preliminary nature and warned there can be no certainty that an offer will ultimately be forthcoming.

Earlier this month the founder of CNG resigned as chief executive and a director of the company. Finbarr Power led the company to a flotation on the Alternative Investments Market in London last year.

However, the company has since been dogged by poor financial performance and a month ago an earnings warning caused its share price to fall 15pc. The company last December made a loss of €5.6m on a turnover of US$55.5m.

In recent days the company’s share price has risen considerably, driven possibly by takeover rumours.

In a statement this morning to the Irish Stock Exchange, the company – without naming the source of the offer – described the approach as an informal and unsolicited one, and said it may or may not lead to an acquisition.

“A further announcement will be made in due course. In relation to this announcement, shareholders are advised to take no action in relation to their shareholdings in the company,” the statement read.

By John Kennedy