Argentine tycoon accuses Falklands firm FIH of scare stories

The Argentine tycoon weighing a bid for the Falkland Islands’ biggest company, FIH, today accused it of “scaremongering” to rebuff a possible offer.

Dolphin Fund, the vehicle of Eduardo Elsztain, said last week it was considering trumping the £37 million recommended offer from the Rowland family. Edmund Rowland is executive chairman of AIM-listed FIH, formerly known as Falkland Islands Holdings.

Elsztain’s approach “seriously threatens to undermine” the company and the interests of staff, FIH said. Argentina disputes UK sovereignty over the islands.

Dolphin said today it had been a shareholder in FIH for almost a decade, during which time FIH had “never expressed any concern”.

“Dolphin can only assume that these scaremongering statements are intended to prevent a higher offer being put before FIH shareholders,” it added.

It said it had “no intention to disrupt the status quo” in the Falklands and was committed to creating jobs, attracting investment to the islands and keeping British management.

Some shareholders are understood to be unhappy with the Rowlands’ 300p, which is below the current share price.