Irish Continental Group’s (ICG) shares soared in early trading on Monday as investors got their first chance to react to a €1.2 billion management buyout bid for the ferries operator led by chief executive Eamonn Rothwell. Shares in the owner of Irish Ferries were initially suspended on Euronext Dublin to facilitate an auction to determine an equilibrium price for the stock, after it was subject to a flurry of orders, following news late on Friday of the €8-a-share bid. While the shares spiked above the offer price, to €8.08, after trading commenced at 8:30am, it subsequently settled at €7.96, marking a 27.6 per cent jump on Friday’s close. The bid by Rothwell (71), who owns 21.7 per cent of the business, and other senior managers, who hold a further 2 per cent of the stock, comes 19 years after the long-standing CEO made a previous failed attempt to lead a management buyout. That was thwarted when then major developer Liam Carroll and a consortium led by businessman Philip Lynch’s One51 and Doyle Shipping also each accumulated stakes and participated in takeover struggle that ended in stalemate. Rothwell’s rivals, who were mostly interested in the potential development in ICG’s Dublin Port site, held under a long-term lease, were subsequently forced to sell their shares during the financial crisis to pay down debt – crystallising large losses. Rothwell has led the group since 1992. Davy analyst Stephen Furlong said in a note to clients that the bid follows “many years of what felt like waiting for Godot”. The management buyout team plans to cash in a third of their shares in ICG for €90 million and roll the rest into the highly-leveraged vehicle – called Bluefin Bidco – being used to carry out the purchase.The bid is being funded by €455 million of preferred equity which the management buyout (MBO) team would issue to BlackRock’s Global Infrastructure Partners subsidiary. BNP Paribas Banco Santander has arranged €798 million of loans for the bidders. Goodbody Stockbrokers is advising them.ICG chairman of 22 years, John B McGuckian, and other non-executive directors have has committed to selling the 3.2 per cent of ICG they hold between them to the MBO team. The group said the MBO team did not initiate a proposal to acquire ICG. It said that the independent directors, having “carefully considered ICG’s strategic position and the alternatives available to enhance value and liquidity” for investors initiated the process. “Against this backdrop, having regard to the factors described above and in the absence of any third-party proposal, the independent ICG board invited the members of the MBO team to evaluate whether a management-led acquisition of ICG could be developed and financed in a manner that would deliver value and liquidity to ICG shareholders,” Friday’s statement said.