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Ivan Davis, a member of the party for 16 years, submitted nomination papers, insisting he was running ``to ensure that the wreckers do not succeed``.
But his move was condemned by rebel MP Jeffrey Donaldson who accused him of putting ``personal interests`` before wider unionism.
After handing in his nomination papers in Banbridge, Mr Davis, a former mayor of Lisburn Borough Council, appealed to those who had come out in support of the Good Friday Agreement in the 1998 referendum to back his campaign.
``Essentially I am standing to ensure that the wreckers do not succeed,`` he said.
``I am appealing to all fair-minded people who want to build a better future and especially the 41% that has been reluctant to vote to come out and support me as I am coming from the centre.``
Mr Davis, who was deselected by Ulster Unionists, said he had received some encouragement from within the party to go independent.
He was not aware of any disciplinary action in the Ulster Unionist Party against him for running against the party.
``It would be ironic if such action was taken against me who has supported every Ulster Unionist Council resolution over the past five years given the reluctance to discipline those who have flouted UUC decisions,`` he said.
Ulster Unionist MP Jeffrey Donaldson, who has three running mates Billy Bell, Norah Beare and Jim Kilpatrick, said he was ``disappointed`` that Mr Davis had ``decided to split the unionist vote``.
``When Ivan stood for selection in Lagan Valley he signed an undertaking, a pledge that he would not stand against democratically elected candidates,`` Mr Donaldson retorted.
``Ivan does not have the support of the Ulster Unionist Party in Lagan Valley.
``He has previously stood for both the DUP and the UUP and now is running as an independent.
``Ivan has shown no credibility in making this move and has shown that he clearly puts his personal interests before the wider interests of unionism by his continual jumping around from party to party.``
Mr Davis insisted today his decision to stand would not damage pro-Agreement Ulster Unionist Billy Bell.
``Billy and I worked had together in the constituency and both inside and outside the Assembly,`` he said.
``We would both be hoping for a good turnout which will elect both of us.
``I am running to maximise the unionist vote.``
With David Trimble living in the constituency, Alliance candidate Seamus Close cheekily suggested the Ulster Unionist leader would face a problem on who to cast his vote for.
``David Trimble clearly has a dilemma,`` he said.
``Does he vote for his former Assembly chief whip, Ivan Davis or the MP who defied the whip at Westminster, Jeffrey Donaldson?
``Mr Trimble may be on the horns of a dilemma but there is a solution. He could always cast his number one vote for me!``
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