Valentia may get dividend go-ahead

BONDHOLDERS in Valentia Telecommunications, the owner of Eircom, were last night expected to give the go-ahead for the company to pay a dividend if it floats on the stock exchange.

Valentia has been in negotiations with the bondholders for several weeks and the deadline for conclusion of the talks lapsed yesterday.

Eircom raised €1.1 billion from a bond issue last year and, as part of the arrangement with bondholders, it agreed to suspend dividend payments. Last May, the company paid its shareholders, which include Tony O’Reilly, George Soros and its employees, €540 million in dividends.