Bank accuses workers of takeover

Several former senior executives with an AIB subsidiary acted in “a deliberate, clandestine and unlawful manner” in secretly scheming to take over its international financial services business, it was claimed before the Commercial Court today.

AIB claims the executives were behind a management buyout offer for AIB International Financial Services (IFS).

When AIB decided last June to sell the business to another group, Capita, the bank claims the six were involved with another rival business - Centralis - in its attempts to take over the clients, business and staff of IFS.

The defendants deny the claims.

They are: Pat Diamond, Sandycove, Dublin; Aidan Foley, formerly with an address at Kilmacthomas, Co Wexford; Gerry McEvoy, Phibsboro, Dublin; Derek O’Reilly, Castleknock, Dublin; Andrew O’Shea, formerly of Julianstown, Co Meath; and Joe Walsh, formerly of Monkstown in Co Dublin.

AIB has also brought proceedings against a number of financial services companies -Centralis SA based in Luxembourg, Centralis, Switzerland, and Centralis, Hungary.

Those companies deny claims they were involved in the alleged takeover scheme. It is also pleaded AIB’s actions are preventing the corporate defendants competing against IFS.

After 25 directors and employees left IFS between June and August, Capita reduced from €55 million to €33 million its offer for IFS, AIB has claimed. The defendants’ alleged actions led to the bank incurring significant loss and damage, it is pleaded.

AIB secured a temporary injunction last month requiring the defendants preserve documents and computer records.

Michael McDowell SC, for AIB, opened the bank’s application for orders - to apply pending the full hearing of the case - restraining the defendants using any information relating to IFS or approaching its clients.

This action was not about preventing a rival company competing with AIB, or the bank being unhappy that several of its employees had left to work for a competitor, he said. Rather, the defendants, while they remained employees of AIB, had engaged in a “carefully contrived” plan to bring IFS’s clients to the Centralis companies.

The defendants had put their plan into action “with their eyes wide open” after their proposed management buyout had not been successful, he said. This was a flagrant breach of the “fiduciary duty” owed by the personal defendants to their then employer.

The hearing continues tomorrow before Mr Justice Frank Clarke.