AIB IS to enter mediation talks with six former senior executives accused by the bank of secretly scheming to take over the clients, business and staff of AIB’s international financial services business for their own gain, the High Court heard yesterday.

The bank has claimed the six were behind a management buyout offer for AIB International Financial Services (IFS).

It alleges they turned to their “Plan B” option by setting up a rival business to take over the clients, business and staff of IFS when AIB decided to sell the business to Capita last June.

AIB claims that after 25 directors and employees left IFS between June and August, Capita reduced its offer to buy IFS from €55 million to €33 million.

AIB claims an internal inquiry revealed that their actions had led to significant loss and damage being caused to the state owned bank.

The six executives are Pat Diamond, Elton Park, Sandycove, Co Dublin; Aidan Foley, Grawn, Kilmacthomas, Co Wexford; Gerry McEvoy, Shandon Park, Phibsboro, Dublin; Derek O’Reilly, Fernleigh Drive Castleknock, Dublin; Andrew O’Shea, Ashbrook House, Julianstown, Co Meath, and Joe Walsh, Grosvenor Terrace, Monkstown, Co Dublin.

The defendants reject the bank’s claims and deny any wrongdoing.

Earlier this month AIB secured an injunction requiring the defendants to preserve all documents and computer records. The six have also given undertakings they would not solicit, canvas or try to contact AIB clients or those who were clients as of last July 14th.

When the matter was mentioned yesterday before Mr Justice Peter Kelly, Michael McDowell SC for AIB said the parties would meet later this week in an attempt to resolve the dispute.

The judge said he welcomed “anything that could bring an end” to the matter, given the significant time and costs involved should the case be fully contested.

He had earlier asked the parties if the action would be “a battle to the death” or if mediation was a possibility.

Mr Justice Kelly added if the talks did not produce any results, AIB’s application for the injunctions against the six to remain in place pending the full hearing of the action would get under way before the Commercial Court on Monday afternoon.

If that hearing went ahead, the court would also consider an application brought on behalf of Mr O’Shea aimed at dismissing AIB’s action.

The judge also said that the full hearing of the action was not likely to take place until late December or early January.