B&B – eircom split not likely just yet

7 Nov 2006

Plans by eircom’s new owner Babcock & Brown Capital (B&B) to split the company in two are unlikely to happen before next year’s election, according to siliconrepublic.com quoting people familiar with the situation. B&B’s head of corporate finance Rob Topfer told the Wall Street Journal that his firm could recoup its EUR2.4 billion investment in the telco by hiving off its retail and wholesale divisions, in a move that would be welcomed by the Association for Licensed Telcos (ALTO). However, such a plan would first have to negotiate several major regulatory hurdles and also be signed off by the government. siliconrepublic.com says that a move is unlikely to take place before Irish general elections next summer as the present administration is unlikely to wish to engage in such a debate before the election.

Ireland, eir