Are Eircoms Directors Guilty Of Securities Fraud?

The Business Post article on the Eircom Network Shambles also mentions that a Board Sub Committee (comprised largely of executive directors I've been told separately) was fully appraised of the need for an urgent €1 Billion investment so that the Network could function adequately. If the investment is not made NOW the cost of repairing the network will soon mount to the extent that the Board will have to provision major extra funds for the purpose, this will reduce the dividend dramatically if not totally.....and will not guarantee the adequacy of the network even then.

Yet the Eircom Flotation Prospectus was signed off by all the directors (including the sub committee who should have told the Board about these reports). This will state that there are "potential risks " including

"the possible need for substantial investment."

A long overdue €1 Billion overhaul of the Core Asset of a Company valued at €1.26 Billion is surely worthy of a clearer explanation in a 100 page prospectus . If the full extent of the reports on the degradation of the network have been deliberately suppressed from the market it could make for interesting times in Eircom once the newest lot of investors realise that they cannot sweat the beast because it is already grossly malnourished and in grave danger of complete collapse....and Biddy won't get off and walk because her contract entitles her to a 'free ride'

M