Murtagh threatened Smart liquidation, Fanning alleges

FORMER Smart Telecom chief executive Oisin Fanning has claimed at the High Court that businessman Brendan Murtagh threatened in October 2006 to put the company into liquidation unless all the directors not loyal to Mr Murtagh resigned and signed irrevocable proxies supporting his takeover of the company.

In autumn 2006, Mr Murtagh “manipulated and misrepresented” to shareholders the financial position of Smart, announced that a new investment vehicle with Mr Murtagh as shareholder would only invest if the shareholders agreed to him buying 90% of the company for €1 with the alternative being liquidation, Mr Fanning claims.

However, the “real motive” behind Smart Telecom founder Oisin Fanning’s legal challenge to the management buyout is to derail a proposed “highly sensitive” transaction between Smart Yuroe and another company, businessman Brendan Murtagh has claimed. As a 10% shareholder in Smart Yuroe, Smart Telecom would benefit from the proposed transaction.