Ginger group resumes campaign to remove some Eircom directors

Broadcaster Eamon Dunphy and Senator Shane Ross have resurrected their campaign against the board of Eircom. The two men, along with TD, Mr Tony Gregory, are seeking the removal of six non-executive directors.

Mr Ross, who is also business editor of The Sunday Independent, said the group had notified Eircom yesterday that it would propose a motion for the removal of the directors at the extraordinary general meeting scheduled for mid-March. The meeting is being called to approve the sale of Eircell to Vodafone, the international mobile phone giant. He said that, although it had problems with the Vodafone deal, the group could not say at this point whether it would be opposing it.

The group will be seeking proxies from other shareholders that will give them discretion to cast votes on their behalf at the meeting. Mr Ross and Mr Dunphy received proxies from 30,000 shareholders at last September's annual general meeting when they unsuccessfully opposed an executive share option scheme. The scheme was passed with massive support from the large shareholders which control Eircom. They include Com source - the Dutch/Swedish alliance that owns 35 per cent - and many Irish and British fund managers. Mr Ross said "dozens" of shareholders had contacted him since the meeting and the subsequent agreement to sell Eircell, asking: "What are you going to do about this? What role are you going to play?"

The senator said he was hopeful that some fund managers might break ranks and support the motion to remove directors including Mr Jim Flavin, the chairman of DCC, and Mr Pat Molloy, the former chief executive of Bank of Ireland. Other directors in the group's sights include Mr Dick Spring, the former Labour leader and Mr Bill Attley, a previous general secretary of SIPTU. Both men represent the interests of employees and the Employee Share Ownership Plan Trustee which owns 15 per cent of the company.

Mr Dunphy was more sanguine about the group's chances of effecting change. He accepted that many small shareholders had been disappointed at the outcome of their efforts at the a.g.m. "It was an exercise in accountability. I don't think the thing is played out yet," he said.

The exercise would create a template for future state sponsored flotations that would see the rights of small investors respected, said Mr Dunphy.

Mr Gregory said they hoped to act as a catalyst for the expression of small shareholder "They want somebody to do that," he said.

Eircom closed down six cents last night at 242 cents. The fall mirrored an 8.5p sterling fall in Vodafone to 223.13p sterling. The all paper Eircell deal is worth 165 cents per Eircom share based on the Vodafone closing price.