Reports of a new bidder for Irish e-transactions firm Alphyra has sent share prices on the Irish Stock Exchange (ISEQ) soaring.
The latest bid for Alphyra, whose management team is pushing for a management buyout (MBO), is being led by US transaction giant, First Data and advised by Lehmann Brothers.
This afternoon, it became known that Alphyra has confirmed First Data as the bidder for the company. In a statement today the company confirmed that First Data expressed an interest.
In recent days the new bid by First Data was delayed due to problems over legal representation as a potential conflict of interest arose in relation to its legal advisors.
Rumours of a potential bidding war drove Alphyra’s share-price up by almost 4pc on the Irish Stock Exchange by midday today, whilst the index itself was up 4.95 at 4,200.37. The index is understood not to have closed above 4,200 since early December.
The rallying was led by reinforced reports that the subsidiary of Western Union, First Data, was considering making a bid for Alphyra.
Alphyra’s management team, backed by Benchmark Capital, has offered €2.45 per share for the company, valuing it at some €80m.
The buyout team includes Alphyra’s CEO John Nagle, who owns 5pc of the company, and finance director John Williamson. The offer has been given backing by the company’s two independent directors Nick Koumarianos and Grant Wilkinson.
Since the MBO was initiated last year, there have been reports that another party had expressed an interest in the company and in November it emerged that First Data was poised to make a bid. Alphyra, however, has denied reports that First Data was looking at a takeover bid worth €100m.