Fyffes has accused DCC of insider trading while taking legal action against the conglomerate.
Financial chiefs at the Irish fresh produce trader believe DCC had inside information when it sold a substantial swathe of Fyffes shares in February 2000.
Ireland-based DCC moved 31.17 million shares – equal to nine per cent of the company – in three portions two winters ago.
Fyffes money-men say the sale constituted unlawful dealing and decided to act 'having regard to the information and advice available to the company concerning the transaction.' It names DCC chief James Flavin and subsidiary firms S&L investments and Lotus Green, which held the shares.
But DCC hit back at the allegations, claiming that after the first tranche of shares were sold the famous banana merchant had encouraged it to shift the rest, amid fears they would overhang the market.
A DCC spokesman told the Financial Times: 'If Fyffes believed that it was inappropriate for Lotus Green to sell shares in Fyffes at that time, they should have sought to discourage rather than encourage sales.' He added that the action would be vigorously challenged.
