Craig Whyte was told he'd be 'mad' to takeover Rangers

Craig Whyte was told he would be “mad” to takeover Rangers, a court heard.

Lawyer Gary Withey said he warned Whyte as he today claimed Sir David Murray's advisers had not been "open and candid".

The accusations were heard at Whyte's trial at the High Court in Glasgow.

The 46 year-old denies a charge of fraud and a second allegation under the Companies Act in connection with his May 2011 takeover.

Mr Withey was giving evidence for a third day.

The corporate lawyer had worked for English firm Collyer Bristow.

The 52 year-old was instructed in the takeover talks having initially met Whyte in mid-2010.

Mr Withey was quizzed about a so-called “data room” set up for any takeover.

The witness said: “I came into five A4 box files and I was told that was the data room. I was shocked.”

Whyte's QC Donald Findlay asked Mr Withey did he think Sir David's team were being “open and candid”.

He replied: “I knew that they were not.”

Mr Findlay referred to two “liabilities” that had been facing Rangers – the so-called Small Tax Case and the Big Tax Case.

The advocate put to him: “In the early stages you had no indications that they existed?”

Mr Withey: “That is correct.”

The witness also said: “I told Mr Whyte that he would be mad to go ahead with the transaction and he should walk away.

“There were things that we had to discover and it made it uncomfortable having to discover things rather than being told upfront.”

Asked about the discovery of the Big Tax Case, Mr Withey told the court: “I remember having a spreadsheet. I remember having two meetings with their (Murray team) QC.

“But, anything else was highly confidential.”

Whyte later went on to strike a £1 deal to acquire Sir David's majority stake at Rangers.

Mr Findlay asked Mr Withey: “Did anyone ever bother to hand over a £1 coin even as a souvenir?”

The witness said he was not aware of that.

Mr Withey later said both tax cases “caused real difficulty”.

Mr Findlay later asked him: “So, you are left with saying to your client: 'here is the situation, I would walk away, but it is up to you'.

“That is what you did.”

Mr Withey: “Probably on more occasions than I care to remember. I thought he was mad.

“I told him to walk away, but, by the time he is going to sign, it is too late...he is going to sign.”

The jury later heard about David Grier – another person said to have been involved in the takeover negotiations.

The QC asked Mr Withey what he believed Mr Grier's role to have been.

Mr Withey replied: “With the benefit of hindsight, to get RFC (Rangers) into administration and walk away with millions of pounds of fees.”

Mr Grier was said to have been involved in talks with Lloyds Bank with regards the £18m loan that was owed by the club.

But, Mr Withey said he spoke to Whyte about Mr Grier.

Mr Withey added: “I could not work out what he was doing there.”

He also told the court Mr Grier got a £200,000 fee before he was part of a firm – Duff and Phelps – that was involved in the later administration of Rangers.

Mr Withey said: “It was a nice deal for them.”

The trial, before Judge Lady Stacey, continues.