NCB denies Fanning claim on MBO

NCB HAS said certain claims made by Oisín Fanning, the former chief executive of Smart Telecom, in a pending court case are "entirely without foundation".

Mr Fanning has taken a case against Brendan Murtagh and others, seeking to cancel the management buyout (MBO) of Smart Telecom in 2005. He claims Mr Murtagh withdrew his support from the company to drive down the price prior to the MBO.

He claims that, at the time, he met Murtagh's adviser, Liam Booth, the managing director of NCB Corporate Finance, and that Mr Booth advised him the deal could be done at just 6p or 8p a share, if Mr Murtagh held off financing the company. He further claimed that Mr Booth said he was confident he could get the deal passed by the Takeover Panel because a previous director of NCB was on the panel.

In a statement yesterday NCB said Mr Fanning had advanced "very serious and utterly unsubstantiated allegations" against NCB and Mr Booth, as part of his action against Brendan Murtagh.

"Mr Fanning has never previously raised such allegations with NCB or any regulatory authority and it is extraordinary that NCB should only learn of his claims two years after the alleged event, and then only through media reports.

"Neither NCB nor Mr Booth are a party to the proceeding being brought by Mr Fanning and NCB wishes to make it clear that the claims against NCB and/or Mr Booth are entirely without foundation. Furthermore, NCB reserves the right to take all appropriate steps to protect its good name, and that of its people, from such a scurrilous attack.

"On first being made aware of the unfounded claims being advanced by Mr Fanning through media coverage of the case on the 30th April, 2008, NCB immediately notified the Financial Regulator and the Irish Takeover Panel about its position in relation to this matter and handed the matter to its legal advisers."

The case is due to be mentioned on June 25th, when Mr Murtagh will seek to have it struck out.