Monday, September 28, 1998 Published at 09:49 GMT 10:49 UK
Charges dropped over Dodi child claim
Ms Holliday is said to have alleged an affair while Mr Fayed was with Princess Diana
The Crown Prosecution Service has decided not to take action against a woman who claimed to be the mother of a child to Dodi Fayed.
Diane Holliday, 37, of Little Saxham, Suffolk, had been questioned by Metropolitan Police detectives investigating an alleged financial deception.
But a Metropolitan Police spokesman said that on the advice of Crown Prosecution Service lawyers the case against Ms Holliday had been dropped.
Ms Holliday, who is divorced with two teenage children, was arrested by Scotland Yard detectives in February - shortly she told newspapers of her involvement with Dodi Fayed.
Ms Holliday said she had a five-month secret affair with Mr Fayed while he was also romantically involved with the princess.
She said her daughter had been given up for adoption in the United States shortly after being born in November 1996.
Her claims were dismissed by Mr Fayed's father, Mohammed Al Fayed, the owner of Harrods.
Ms Holliday claimed she had DNA evidence which would prove her claim.
Scotland Yard has never given any details about the deception allegations made against Ms Holliday.
Ms Holliday has appeared before magistrates in Ipswich, Suffolk, in recent weeks in relation to a separate allegation.
She is accused of wasting police time and was charged after alleging that she had been attacked at Coddenham, Suffolk. Ms Holliday denies the charge.