The Irish Independent reports that State-owned Anglo Irish Bank is to take control of Arnotts, the historic Dublin department store struggling to pay huge debts of €260m.

In a surprising twist to the banking saga, Anglo, which was bailed out by taxpayers, is now set to control the iconic department store, which opened in 1843. Anglo, which is receiving €22bn of taxpayers' money, has informed the EU Commission it intends to have "joint control" over Arnotts, along with fellow lender Ulster Bank. From this morning, the banks will take effective control of the shop. But the store will open for business as usual. It is understood that none of the company's 950 jobs is under threat.

Radical: The two banks have lent the department store €260m and a radical deal to restructure these debts is now on the cards as the bank tries to claw back as much cash as possible, sources confirmed last night.

The two banks are not expected to run the store on a day-to-day basis, but will have a major influence over its future plans. Because Anglo Irish Bank is state-owned, the EU Commission has to approve the deal and any objections have to be submitted by August 9.

Anglo Irish declined to comment last night on its plans, citing "client confidentiality". The bank is seeking to recover as much value as possible for the taxpayer from borrowers who have found it difficult to meet their loan repayments, among them Arnotts Holdings, the firm that runs the store.

Earlier this year, Arnotts reached a deal on its debts that saw Ulster Bank and Anglo injecting more money into the company. The debts were run up by Arnotts on its Northern Quarter development in Dublin's city centre.

The company had proposed a huge €750m redevelopment of a 5.5-acre block bordered by Henry Street, Middle Abbey Street, Liffey Street and O'Connell Street, into a new shopping, entertainment and residential quarter.

The quarter was to have 47 shops and 14 cafes, restaurants and bars, around 175 apartments and a four-star hotel.

Arnotts also went ahead with a trendy new store in the Jervis Centre. That closed this year.

Deal: Sources said while this debt deal remained in place, a wider restructuring deal is on the cards between Arnotts and its lenders. The department store could not make anyone available last night to discuss its future relationship with Anglo.

The company is 55pc owned by barrister Richard Nesbitt and his family, with the remainder of the shares held by Anglo Irish and Boundary Capital. Earlier this year, Boundary said it was facing a virtual wipe-out on its stake. Contacted last night by the Irish Independent, Mr Nesbitt declined to comment.

Earlier this year, Arnotts' marketing director Jayne O'Keeffe said: "It is standard practice for the banks to support the future direction of the business." At that stage the banks had opted not to convert their debts into shares in the company, but this may now change.

The Irish Independent also reports that Ryanair boss Michael O'Leary sold nearly €20m of shares in the airline yesterday.

The carrier's shares have soared in recent weeks amid confirmation of a €500m dividend that will be paid to shareholders in the autumn and a robust financial performance.

Mr O'Leary, who before yesterday owned more than 60 million shares, or 4.04pc of Ryanair, is understood to have offloaded five million shares at €3.90 each. That resulted in a gain of €19.5m, which is then subject to capital gains tax of 20pc, making for a €3.9m windfall for the exchequer and leaving Mr O'Leary with €15.6m.

But the sale by Mr O'Leary will mean he'll miss out on a €1.7m payment from the dividend fund when it's distributed to shareholders in October.

A person must be in possession of Ryanair shares at the cut-off date of September 15 if they are to receive a share of the dividend spoils when cheques are sent to investors on October 1. The dividend payment has to be approved by shareholders at the airline's annual general meeting on September 22, but that's certain to be a mere formality.

Following yesterday's sale, Mr O'Leary is left with just over 55 million shares that are currently worth €211m based on yesterday's closing price of €3.83. That will still mean he'll be in line for a dividend payment of €18.5m come October.

Last year, Mr O'Leary also sold 5 million shares at €3.75 each, resulting in proceeds of €18.7m.

Shares in Ryanair closed down 2.9pc, or 11 cent in Dublin yesterday, when it emerged that Mr O'Leary had sold stock. The airline never comments on share sales by executives.

Ryanair confirmed recently that it would make the €500m dividend -- its first ever -- payment this autumn after talks with US aircraft manufacturer Boeing to place a massive order for new aircraft broke down before Christmas.

"Frankly, we don't have any other use for the money," Mr O'Leary said recently.

The airline is also preparing to pay a further €500m dividend to shareholders, probably in 2013.

Mr O'Leary was paid €595,000 for his role as chief executive at Ryanair in the year to the end of March, after he took a voluntary 10pc pay cut. His bonus for the period was almost cut in half, to €241,000.

Last week, Ryanair reported a pre-tax profit of €105m for the three months to the end of June after it shouldered a €50m charge related to the volcanic ash fallout.

The Irish Times reports that dissident shareholders of investment group One51 have raised further question about controversial tax-free royalty payments to executives.

Shareholders are due to hear an explanation for the payments from the company when they gather for its annual general meeting in Dublin today.

Last night the dissidents claimed to have uncovered that the €4.96 million tax-free payment was made on foot of a patent that had not yet been granted.

Patent lawyers hired by the shareholders had established that the first patent – for a type of paint tin lid – was granted on August 6th, 2008.

This was some six weeks after the related payment was made to a series of companies before being paid out to unidentified executives.

Former One51 executive Gerry Killen, who is the unofficial leader of the “campaign for change at One51”, claimed the decision to make the payment before the patent was received was unusual, given the scale of the payment and the quality of the patent and raised questions about its true purpose.

“It is highly questionable as to how this valuation was arrived at, where there was no demonstrable revenue stream for the patented product,” Mr Killen said.

“Given the scope of the patent was very limited, with hundreds of similar competing patented technologies in Europe, and the fact that it related to a simple mechanical technology, we have been advised by a patent and trademark attorney, that typical royalties for patents of this kind would be in the region of 1-2 per cent.

“It appears incredible that the company could claim that this value would have been paid at arm’s length by an unrelated party, as required under the relevant legislation.”

Mr Killen said there appeared to be “no commercial motive for this value, other than the ulterior motive to allow a small number of executives to benefit from what is effectively the maximum threshold allowable under the tax-free patent income scheme (namely €5 million)”.

He said the group awaited the company’s explanation as to how the value was arrived at.

A One51 spokesman said the companies advisers KPMG and LK Shields had reviewed the transaction.

He said that the key issue was that the filing date of the patent was December 20th, 2007, and that patent, once granted, was in force for 10 years from that date.

The latest allegations came on the eve of what is expected to be a difficult meeting for chief executive Philip Lynch, who will be under pressure to explain the purpose of the scheme which was not disclosed to shareholders.

The dissident shareholders are seeking the election of three directors to the board of the company, which they claim has lost its way under Mr Lynch.

They are seeking the election of Mr Killen along with former Beamish Crawford chief Alf Smiddy and ex-Ibec director of European affairs Peter Brennan.

The shareholders have submitted a series of question to the board about the payments which relate to a patent held by a subsidiary called Protech Performance Ltd.

The payments were routed through a series of companies and 40 per cent of the €4.96 million was paid to up to nine individuals in the company.

The shareholders group wants the company to disclose the identity of the recipients.

It is also seeking an explanation for the use of an elaborate chain of companies and the whereabouts of the remainder of the €4.96 million.

The Irish Times also reports that a receiver has secured a High Court injunction restraining a businessman from preventing him taking possession of a hotel, pub and nightclub employing more than 100 people in Tallaght. The injunction continues pending the outcome of a full action over the receiver’s appointment.

Declan Taite, a receiver appointed by Irish Nationwide Building Society (INBS), secured the order against Laurence O’Mahony, Shrewsbury Road, Ballsbridge, Dublin, and three of his companies after alleging he was being prevented from securing the property.

Mr O’Mahony and another businessman, Thomas McFeely, Ailesbury Road, Ballsbridge, allegedly owe €59 million to INBS arising from various loans and guarantees.

Mr Justice Brian McGovern granted Mr Taite and INBS an injunction restraining Mr O’Mahony, the Tallaght Plaza Hotel Ltd, Codex Taverns Ltd and Oakleaf Construction Ltd preventing or obstructing the receiver getting into and securing the Plaza Hotel Complex, Belgard Road, Tallaght.

The judge said he was satisfied to grant the injunction because the receiver did not have control of the property and could not carry out his tasks.

Mr Justice McGovern also made orders preventing the defendants from entering upon the property and requiring them to deliver up the keys, alarm codes, locks and all other security and access devices.

Lyndon MacCann SC, for Mr Taite, said the INBS appointed his client as receiver last June. The appointment arose out of a €51 million loan given by INBS to Mr O’Mahony and Mr McFeely, in December 2005, to refinance borrowings on a mixed development in Tallaght.

Mr MacCann said the total amount outstanding was some €59 million with daily interest of €11,500 accruing. Repayments on the loans had been sporadic since April 2007 and none had been made since November last.

While there had been no issue between Mr McFeely and the receiver, Mr O’Mahony had resisted the appointment, claiming he had agreements with the defendant companies in relation to the property, Mr MacCann said.

Mr Taite had concerns for the business because he was not in control of the day-to-day running of the business, he added. Mr Taite was informed, as a result of management agreements signed in 2009, that Tallaght Plaza Hotel Ltd was the operator of the 122- bedroom hotel while Codex Taverns Ltd operated the adjoining licensed premises.

Oakleaf Construction Ltd also claimed it had a licence in respect of car-parking spaces on the property.

Mr MacCann said the management agreements did not prevent Mr Taite taking possession of the property.

Opposing the application, Alistair Rutherdale, for the defendants, said Mr O’Mahony had no difficulty having a receiver appointed over his and Mr McFeely’s interest in the property, but the receiver was not entitled to remove the two management companies in occupation of the hotel and the adjoining bar.

The orders being sought against his clients were mandatory in nature and should not be granted, Mr Rutherdale argued.

Mr Justice McGovern said both sides agreed there was a fair issue to be tried related to the appointment of a receiver in circumstances where management agreements exist. He was also satisfied damages would not be an adequate remedy as he “could not overlook” the “very substantial debt of almost €60 million involved”.

He was satisfied the balance of convenience lay in granting the injunction at this stage as, on the evidence, Mr Taite could not carry out his task as receiver “adequately or properly.”

While he was expressing no view on the agreement between the management companies and Mr O’Mahony in relation to the property, such arrangements could not impede the court from granting the orders sought, the judge ruled.

The Irish Examiner reports that up to 50% of businesses have experienced instances of serious fraud in the last two years — well above the global average — according to a survey.

The 11th edition of the Global Fraud Survey from professional services firm Ernst & Young includes Ireland for the first time. As such, there is no clear picture of how the situation has changed in the country over recent years. However, the global average, according to the survey, is 16%, with approximately 21% of companies in Western Europe experiencing fraud activity in the same timeframe.

According to Ernst & Young’s Julie Fenton: "These figures are perhaps unsurprising given the credit crunch and ensuing recession. There has been increased pressure on businesses and board members to maintain financial results in difficult conditions, which has encouraged new frauds."

However, Ireland fares better than most countries when it comes to actually doing something to combat fraud. According to the findings, 70% of Irish companies have a clear process for reporting incidents to their board, compared to 50% of companies on a worldwide scale, and 50% of Irish companies have a response plan compared to 39% of global firms.

However, on a whole, Irish companies are still more vulnerable to fraud than the international average.

Some 40% of Irish companies have never assessed the risk of fraud to their business. The global average is 14%.

"Ireland is well-prepared in some areas of fraud management, but it is still seriously exposed in other key areas," said Ms Fenton.

"The fact so many businesses in Ireland have no formal policy towards handling fraud risk is truly alarming considering Ireland is experiencing greater incidence of fraud attacks than many other countries," she added.

Ms Fenton said: "Despite the pressure on corporate resources, prioritising anti-fraud and anti-corruption efforts is essential."

Although this marks Ireland’s debut inclusion in the global survey, it was featured in Ernst & Young’s European fraud survey last year.

When asked in that survey if they expected to see an increase in fraud over the following 12 months, 59% of Irish respondents answered yes. The European average is 55%.

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