PTSB-BAWAG deal 'derisory', four shareholders tell court

A €1.6 billion takeover of PTSB by Austrian bank BAWAG has been described as "derisory" by four shareholders who are objecting to the acquisition in the High Court today.

The hearing is being held to sanction the deal which would see the State sell its 57% stake in the bank.

In July, shareholders voted by a margin of 91% to approve the takeover including Minister for Finance Simon Harris, who holds shares on behalf of the State.

However, investor Piotr Skoczylas argued today that if the Minister for Finance's vote was excluded only 64% of shareholders would have voted in favour of the acquisition which would fall below the 75% threshold required to approve the deal.

Mr Skoczylas said also argued one of the shareholders, businessman Eamon Waters whose company owns 7% of PTSB, had "links to the Irish Government" which may have "influenced" his vote to support the deal.

He said that if Mr Waters and the Minister for Finance were excluded, 60% voted against the deal.

However, Lydon MacCann SC, representing the Department of Finance, said there was "not a scintilla of evidence" that the Minister was "not selling at best price reasonably available".

He argued there was not evidence that the State was selling at a "knock down price".

Also represented in the High Court was Axis Capital, a company co-founded by banker Mark Duffy, which previously said it may make a bid for PTSB.

The court was told by Kelley Smith, SC for PTSB, that Axis Capital had been instructed by the Irish Takeover Panel not to publish any information regarding potential funders for an offer without consent in advance from the panel.

Lutz Hartmann, who represented Axis Capital, said the company would follow the panel's instructions.