McCreevy denies bias in Eircom takeover

FINANCE Minister Charlie McCreevy said yesterday that if he had not changed the tax code during the Eircom takeover, it would have favoured Denis O’Brien’s consortium — a move, he said, that would have caused political “hullabaloo”.

Mr McCreevy was giving his first detailed response to the Green Party’s charge that he amended legislation that had the effect of facilitating the deal between Tony O’Reilly’s Valentia consortium and the Eircom employee trust (ESOT) during the takeover battle.

Mr McCreevy’s guarantee to employees that preference shares they acquired in Valentia would enjoy the same favourable tax status as ordinary shares was an essential prerequisite to ESOT taking a 29.9% stake in the consortium.