O’Brien refused costs security against Ganley companies

Businessman Denis O'Brien has been refused High Court orders directing two companies associated with businessman Declan Ganley to provide security for costs of their legal action over the award of the State's second mobile phone licence to Esat Digifone.

Mr Ganley’s ability to pay the costs of the action meant the two companies did not need to put up money in advance, Mr Justice Seán Ryan ruled.

Mr Ganley, US-registered Comcast International Holdings and UK-registered Ganley International were all members of the Cellstar consortium which came last of six bidders in the public competition for the licence, which was eventually awarded to Esat Digifone whose chairman was Mr O'Brien.

Mr Ganley and the two companies are suing Esat, former communications minister Michael Lowry and the State over the award. They claim Mr Lowry interfered with the tender process to ensure Esat would be awarded the licence and that Mr Lowry accepted payments made on behalf of Esat and/or Mr O'Brien to ensure Esat would get the licence.

Mr O’Brien has counter- claimed and contends the conduct of Mr Ganley and the companies is actuated by malice towards him.