A threatened legal obstacle to the £1.9 billion (€2.4 billion) takeover of Esat Telecom by British Telecom has been removed with the resolution yesterday of differences between the ESB and BT arising from the takeover.

At the High Court yesterday, Mr Mel Christle SC, for the ESB and its subsidiary ESBIT Ltd, told Mr Justice O'Donovan that he was happy to say that the matter would not bother the court. He had just received a message as he was entering court that it had been resolved. In the circumstances, Mr Christle added, he was not in a position to tell the court what the terms were or on what basis the matter had been resolved. He asked that the case be put back to today.