Smart shareholder opposing Murtagh

A Smart Telecom shareholder who is planning to oppose the sale of the company to its biggest backer says he has the support of holders of 12 million shares, just over 3 per cent of the company.

The group's directors recently agreed to transfer the entire business, and its €40 million liabilities, to BidCo, a vehicle controlled by Brendan Murtagh, who owns 20 per cent of Smart. In return, Smart will get 10 per cent of BidCo.

However, Smart shareholder Des Carrick says that the deal should be opposed and argues that the company can be saved in its present state. Shareholders will be asked to vote on the proposal at an extraordinary general meeting on October 31st.

Mr Carrick said yesterday that the financial crises that hit Smart recently have resulted in the company being pared back to what is a potentially viable business.

He told The Irish Times yesterday that since he launched his campaign at the weekend, he has won the support of shareholders with 12 million shares, or 3 per cent of the company.

In order to block Mr Murtagh's bid, he will need the support of people who hold 76 million shares. Mr Carrick said that he was confident of getting it.

"The feedback that I've been getting from the people I've spoken to has been good," he said yesterday. "The people who have already come back to me and given their support are talking to other shareholders as well."

Mr Carrick said that the company's current assets, including its 160 corporate broadband customers, 17,000 residential clients and 10 per cent of a fibre optic telecommunications cable in Dublin, are potentially valuable.

He pointed out that there were possibilities for Smart other than Mr Murtagh's proposal, including a merger with another operator. He also argued that Mr Murtagh would not take on a business with €40 million in liabilities unless he believed it was worthwhile.

The company would not comment yesterday.

Last month it emerged that Smart had run out of cash and was relying on Mr Murtagh and others for the €2.5 million per month it needed to keep trading.

Last week, Eircom cut off its wholesale service to Smart in a dispute over a €4 million bill.