The Persona consortium was the runner-up in the 1995 mobile phone licence competition won by Denis O'Brien's Esat Digifone. While the competition is still under investigation by the Moriarty tribunal, the High Court case will focus on the way the competition was run by civil servants and senior politicians.

"Persona doesn't have to prove corruption in the decision-making process, " a legal source said. "Rather, it will focus on the way the rules were changed during the competition."

Neither side would comment this weekend but political and legal sources confirmed that lawyers for the state intend to proceed with their High Court action to force Persona to file a statement of claim. This document would outline the exact complaint Persona intends to focus on in its action for damages. Given the substantial profits generated by the winning consortium, legal sources said, Persona could receive damages up to 200m if successful.

The state's legal team believes there is no basis for the Persona claim and are trying to force the failed licence bidder to move before the tribunal's final report is published later this year. Persona is also pursuing a complaint with the European Commission.

The case could be politically explosive, as evidence may be called from leading members of the 1994-97 Rainbow coalition including former taoiseach John Bruton and the current leaders of Fine Gael and Labour, Enda Kenny and Pat Rabbitte. Former Fine Gael minister Michael Lowry will also be centrally involved.

Lawyers for Persona believe the tribunal has unearthed sufficient evidence to confirm serious defects in the handling of the controversial mobile phone competition. The tribunal has already heard evidence that Persona, whose members included Sigma Wireless, Motorola and ESB International, was at one stage the lead bidder. Lowry's role has also been questioned.

Significantly for Persona, in September of last year, while stating that he had not reached a final conclusion, the tribunal chairman Michael Moriarty recorded that in relation "to the evidence given in connection with the conduct of the GSM competition and the negotiation of the licence it may be reasonable to conclude that there were defects in the process".

The tribunal will shortly hear from economist Peter Bacon, who was commissioned to review a consultant's report used by the government in making the final licence decision in 1995. Bacon's review for the tribunal concludes that the consultant's report "may contain a number of serious fundamental flaws".

Michael Anderson, who prepared the report, has declined to travel from Denmark to give evidence at Dublin Castle.

Anderson sought an indemnity against any legal claims but the tribunal declined to grant it.