Inquiry told of O’Brien row with Desmond

FOUR days before Esat Digifone got the licence to run the country’s second mobile phone network, businessman Denis O’Brien threatened legal action against financier Dermot Desmond, the Moriarty Tribunal heard yesterday.

Digifone solicitor Owen O’Connell recorded the details of the “hardball” negotiations between Mr O’Brien, who headed the consortium, and Professor Michael Walsh, managing director of Mr Desmond’s International Investments and Underwriting (IIU).

Mr O’Connell’s cryptic note recorded Mr O’Brien telling Professor Walsh he no longer trusted him or Mr Desmond and “will seek an injunction to block signing of licence”. IIU held a significant minority stake in the consortium and was a major underwriter.