AIB accuses former executives of plotting for financial services arm

SEVERAL former executives with an AIB subsidiary acted in acted in “a deliberate, clandestine and unlawful manner” by planning to take over its international financial services business, the High Court heard.

AIB claims six executives were behind a management buyout offer for AIB International Financial Services (IFS). When AIB decided in June to sell the business to another group, Capita, the six set up a rival business to take over the clients, business and staff of IFS, the bank alleges.

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

AIB has also brought proceedings against a number of financial services companies — Centralis SA, based in Luxembourg, Centralis Switzerland and Centralis Hungary — which AIB claims were also involved in the plan.

The defendants deny AIB’s claims and denied any wrongdoing. They further claim that AIB’s actions are preventing the corporate defendants from competing against IFS.

AIB claims that, after 25 directors and employees left IFS between June and August, Capita reduced its offer for IFS from €55m to €33m. It claims the defendants’ alleged actions led to it incurring significant loss and damage.

Yesterday, Michael McDowell, for AIB, said the bank had brought proceedings aimed at preventing the defendants from using IFS’s information against it, and from going near IFS’s clients for a significant period.

He said AIB’s action was not about preventing a rival company from competing, or being unhappy that employees had left to work for a rival.

The hearing continues before Mr Justice Frank Clarke.