The businessman Declan Ganley could be exposed to a bill running into millions of euro if he loses in his legal action against the State and Denis O’Brien over the awarding of the second mobile phone licence to Esat Digifone.

Businessman Declan Ganley’s ability to pay the costs of a legal action over the issuing of the State’s second mobile phone licence means two companies associated with him do not need to put up money in advance in case they lose the action, a High Court judge ruled.

Billionaire businessman Denis O’Brien has alleged before the High Court that Declan Ganley has acted “maliciously” and out of “spite” in bringing proceedings against him over the award of the State’s second mobile phone licence to Esat Digifone.

Lawyers for Denis O’Brien are looking for security of costs ahead of a High Court battle over the awarding of the second mobile phone license to Esat in the 1990s.

Seventeen years after it was awarded, the second mobile phone licence, the most lucrative ever awarded by the State, is still embroiled in controversy, as competitors for the licence get their day in court, writes Michael Clifford