Eircom to refloat in March

Eircom shareholders have decided to refloat the company on the Dublin and London stock exchanges in early March, according to weekend reports.

International banks have told a sub-committee of the eircom board that given current market conditions, a floatation would value the firm at between €3.5bn and €3.9bn.

Merchant bank Goldman Sachs, which owns 1% of the company, is the lead advisor for the flotation, though other advisers may also be appointed.

The Valentia consortium, which owns 70.1% of Eircom, is reported to be planning to sell off its entire holding. The Valentia group includes businessman Tony O'Reilly and the private fund company Providence Equity.

The employee share ownership trust (ESOP), which owns the rest of the company, has not yet decided how much, if any, of its holding to sell.

Valentia bought eircom less than two years ago for €3bn, including €900m of the consortium's own money.