A case study of betrayal within an incestuous corporate family

The Norwegian press were clear in their minds - this was a case of corporate betrayal. Confronted with the evidence, the chairman of BT offered a tacit admission of guilt, then tried to take the bald look off the affair. Until yesterday, Telenor regarded BT as its partner; the two companies have joint ventures in Sweden, Germany and Finland. The chief executive of Telenor even got into trouble during the talks with Telia because he met the chief executive of BT for lunch to discuss the British company taking a strategic stake in the merged firm.

Then BT exploded into the Irish market, and pulled the rug from under Telenor's $85 per share bid by offering $100 for Esat.

"I'm quite sure this will be a little surprise for them this morning," said BT's chairman, Sir Iain Vallance.

At least, he added, Esat would be staying "in the family", and he very much hoped that Telenor would remain in Digifone "in one form or another".

The Norwegians were having none of it.

"You say it is staying within the family," one Nordic newsman spluttered, "but this is like the first cousin running off with the bride!"

Esat chairman and chief executive Mr Denis O'Brien was somewhat happier, but he could not be drawn on future plans for himself and his £230 million in cash except to say that he would pursue happiness.

"And if you have fun, you are happy - you have to have a bit of craic," he said.

Playing to the gallery now, Mr O'Brien turned to Sir Iain: "That's a new one for you!"

He was equally philosophical about the involvement of merchant bankers NM Rothschild, who made the offer on behalf of BT. Industry observers will recall bitter exchanges in court between Mr O'Brien and Eircom when the State-owned company had Rothschild sell Cablelink to NTL instead of Esat.

"I'd say it's one-all," Mr O'Brien quipped, adding that he bore Rothschild no ill-will and that the company had served its client's interests.

As he and his directors swept out of the room, reporters wondered if he meant one-all Esat-Rothschild, or one-all Esat-Eircom.