A challenge by the ESB to British Telecom's £1.9 billion takeover of Esat Telecom by British Telecom was adjourned at the High Court yesterday until today. Mr Mel Christle SC, for the ESB, told Mr Justice O'Donovan yesterday there had been discussions between the sides. These were "coming to a head" and it was a case of the matter going ahead today or not.

On Friday last, Mr Christle, on behalf of the ESB and its subsidiary ESBIT Ltd, was granted leave to bring a motion yesterday for an injunction restraining British Telecom from purchasing or proceeding with the purchase of shares in Esat. The ESB claims the purchase is contrary to a Joint Venture Agreement made between it, BT and other parties on June 2nd 1998 and that it will seriously affect the commercial viability of Ocean Communications Ltd, of which ESBIT owns 50 per cent and in which it has invested millions of pounds. On Friday, the ESB was also given leave to seek a mandatory injunction requiring BT to withdraw any offer made by itself or its servants or agents for Esat and a declaration that, insofar as BT purchases any shares in Esat, those shares are held on constructive trust for ESB and ESBIT.