Noonan: Inquiry will cover lead-up, and legal threat, before IBRC's loan deals with O'Brien

Michael Noonan has said new concerns raised by Sinn Féín's Pearse Doherty last night in relation to Denis O'Brien's loan arrangements with IBRC will be covered by the inquiry.

Deputy Doherty said IBRC's liquidators rejected three bids by Denis O'Brien to renegotiate loans worth €315m, but agreed to a fourth proposal after Mr O'Brien threatened legal action.

Deputy Doherty said the terms of reference would not allow the claims to be investigated, but Finance Minister Michael Noonan last night said they would be.

The special liquidators for IBRC have disputed Pearse Doherty's claims.

They say the information put on the Dáil record about the alleged extension of credit facilities was inaccurate and misleading.

Meanwhile, the Dáil has also heard more allegations that the sale of SiteServ to a firm owned by Denis O'Brien was handled inappropriately.

Independent TD Catherine Murphy said Denis O'Brien was approached by personnel in IBRC telling him to increase his bid in order to secure the sale.

Deputy Murphy again told the Dáil that other companies had come forward making higher bids for SiteServ, but Mr O'Brien's firm still emerged as the preferred bidder.

Deputy Murphy made her comments under Dáil privilege during a debate on the IBRC Commission of Investigation.

"I have been told by several sources that it was not the highest bid, and that an approach was made to Mr O'Brien to increase the bid," she said. "I want the inquiry to look at whether that did happen, and if similar approaches were made to other bidders if (it did)."