DCC insisted today that its controversial sale of Fyffes shares was "entirely lawful", the High Court in Ireland heard.

The firm wrote a letter to the Irish Stock Exchange, in which it said the dealings in February 2000 were "entirely lawful and proper". The letter to the exchange was sent in July 2003 and also complained about procedures used by the Irish financial institution over the matter.

According to DCC reporting the controversial sale to the Director of Public Prosecutions before informing DCC itself was "lacking in natural justice".

DCC also complained that the legal proceedings which were initiated by Fyffes regarding the share deals, were unjustified and inconsistent with the fruit importer’s own position.

It said that the statements and actions of Fyffes, and its directors and senior management in January and February 2000 clearly demonstrated none of them thought its officers had price-sensitive information at that time, "regardless of anything they have said or alleged since in order to seek financial gain from DCC".

If Fyffes had believed the information was price-sensitive, DCC claimed in court then the banana giant itself had been in breach of stock exchange regulations by not issuing a statement to the market.

The letter to the Irish Stock Exchange was among documents read during the fifth day of the case on Wednesday. Fyffes is claiming that e106million in sales of its shares by DCC were unlawful because that company's chief executive Jim Flavin, had price-sensitive information.

Topics