Fyffes chief executive David McCann told the Irish High Court that, with the benefit of hindsight, he believed Fyffes had 'made a mistake' when its chairman permitted executive director John Ellis to deal in Fyffes shares in January 2000.

McCann said that Ellis did not then have the same information available to him as was available to DCC chief executive Jim Flavin at the time of three controversial share deals of February 2000, which Fyffes alleges were organised by DCC and Mr Flavin and constituted 'insider dealing'.

McCann agreed that, in December 1999, when Fyffes announced to the market in an outlook statement that it expected 'further' growth in 2000, he did have concerns about Fyffes ability to meet that target. He said the Board made a judgment then that it was too early to advise the market of that concern.

He said when Flavin chose to deal on February 3 2000 and 'had the same information we had''. Kevin Feeney, representing DCC and Flavin, suggested that was not the case. McCann said it was plain from documents which Mr Flavin had in December 1999 that there was a 'very serious' problem facing Fyffes.

McCann was cross-examined on the eighth day of the action by Fyffes against DCC plc, S and L Investments, Flavin, and Lotus Green Ltd, a Dutch subsidiary of DCC which owned 10 per cent of Fyffes.

The case continues on Thursday.

For more information, access www.rte.ie/business/2004/1215/fyffes.html

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