No settlement between AIB and former senior executives

Settlement talks have failed to resolve a High Court dispute involving AIB and several of its former senior executives accused by the bank of secretly scheming to take over the clients, business and staff of AIB's international financial services business for their own gain.

Settlement talks have failed to resolve a High Court dispute involving AIB and several of its former senior executives accused by the bank of secretly scheming to take over the clients, business and staff of AIB's international financial services business for their own gain.

AIB claims the executives were behind a management buyout offer for AIB International Financial Services (IFS).

However when AIB decided to sell the business to another group called Capita in June it claims the six set up a rival business to take over the clients, business and staff of IFS.

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

They dispute AIB's claims, and have denied any wrongdoing.

Last month AIB secured a temporary injunction requiring the defendants to preserve all documents and computer records. In its action AIB claims after 25 directors and employees left IFS between June and August, the other group, Capita, had reduced its offer to buy IFS from €55m to €33m.

The bank also claims an internal inquiry revealed that their actions had led to significant loss and damage being caused to the State-owned bank.

The High Court heard that mediation talks took place between the parties late last week.

Today Mr Justice Frank Clarke was informed that AIB's application for injunctions against a number of the defendants, pending the outcome of the trial, is to proceed.

The hearing, which commences on Tuesday, is expected to last three days.

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