Story in Irish Independent

The Insider

Might be of interest...

http://www.unison.ie/business/irish/stories.php3?ca=80&si=1058962

IgnatiusJRiley

Originally posted by The Insider
Might be of interest...

http://www.unison.ie/business/irish/stories.php3?ca=80&si=1058962

Maybe it is. but i dunno cause I don't subscribe to the Indo!!

vinnyfitz

Eircom eyeing possible flotation by summer 2004
FINANCIAL advisers to Eircom are examining a possible stock market flotation of the telecoms group in the second quarter of next year, the Irish Independent has learned. A growing confidence in international stock markets, a resurgence of telecom stock valuations and Eircom's return to the mobile phone market next May, have prompted corporate finance advisers to look at whether a spring or early summer IPO next year would be a runner.

A flotation in Q2 of next year would depend on stock market conditions staying positive. It would also see the former state company return to the stock market much earlier than had previously been expected.

It is understood that Eircom has not formally hired advisers to prepare for a float, but the board is aware that certain advisers are examining the idea, particularly for the benefit of its private equity shareholders.

The possibility of a 2004 float was given a big boost when it emerged last week that Belgacom, the state-controlled Belgian telecoms group, is to float in the first quarter of next year. This would give Eircom a chance to see how Belgacom gets on, before taking any final decisions to proceed with its own flotation.

Goldman Sachs, adviser to and shareholder in Eircom, is involved in part of the Belgacom float. A successful Belgacom IPO would also give a major boost to the whole sector across Europe.

A spokesman for Eircom said last night the company "has no firm plans in relation to an IPO." But one reliable source said the company will definitely take a look at the possibility of a second quarter 2002 float.

"Several things have come together which may make it an attractive proposition. The arguments for examining it are compelling and that is what they are doing," he said.

He added that its current private equity house shareholders will always look for "an early" opportunity to cash in their investment, if it arises. Eircom shareholders, Providence Equity Partners, Soros Equity Partners, the employee ESOP, Sir Anthony O'Reilly and Goldman Sachs, have already cashed in half of what they invested when they bought it for €3bn.

The timing of any possible IPO is crucial given that Eircom's revenues remain very solid, but it has lacked a strong growth story. The kind of growth story required to lift an IPO could come from Eircom's return to the mobile phone market next May. It is also making progress on the rollout of broadband, which is potentially a high growth area.

Analysts say there is a growing confidence in stock markets about telecoms. James Harper, analyst with Smith Barney Citigroup in London, said that while he cannot make predictions about stock markets between now and next year, based on the current environment, he doesn't see any reason why the €3.5bn Belgacom float shouldn't work.

When asked about whether Eircom is examining a 2004 float, he said: "I don't know. I would have thought they probably are. I'd be surprised if they weren't."

He added that with a Belgacom float and Deutsche Telekom and France Telecom with state holdings likely to come on the market at some stage, there could be competition for telecommunications stock if it were to float in the first half of next year.

Richard Curran
Business Editor

vinnyfitz

Not really any surprise here are there Insider?