Flynn affirms Eircom interest

Millionaire businessman Mr Pearse Flynn has confirmed his interest in Eircom's non-mobile businesses. The beleaguered telecoms company's share price rose five cents yesterday, partly on the back of reports of a possible bid involving Mr Flynn in yesterday's Irish Times and partly on a recovery in telecoms stocks on international markets.

Mr Flynn, who held a senior position with French telecoms group Alcatel until last Friday, told The Irish Times yesterday that he was working in tandem with a prominent Irish businessman and a consortium of several others. Although he did not name the businessman, he said it was not Dr Tony O'Reilly, who was previously thought to be interested in making a bid.

Mr Flynn said Eircom was falling behind other European telecoms companies in terms of deploying new technology such as DSL (digital subscriber lines). "I think this is because it has spent the last year focusing on political issues," he said.

Mr Flynn said he had sought some "basic information" from Eircom two or three weeks ago, as he was trying to read himself into the company. Although familiar with Eircom, he had been out of Ireland for the past 15 years and wanted to "ascertain the lie of the land".

The Cork-born businessman is familiar with Eircom, as both Canadian-based Newbridge Networks and Alcatel supply ATM and DSL technologies to the company. Mr Flynn has just finished overseeing the merger of Newbridge and Alcatel, a deal worth $7.1 billion (€7.65 billion). He also said the people he was talking to about a possible bid had a very good knowledge of Eircom.

He said one of the major drawbacks of trying to turn around a company like Eircom would be the pressure of its high public profile. "When the whole country are shareholders they feel they own the company," he said, adding that this could put huge pressure on an individual in charge of running it.

The possibility of another consortium bidding for the company will not damage Eircom, which currently has no alternative to offer shareholders, apart from Mr Denis O'Brien's consortium, eIsland's bid. Although it has signed confidentiality agreements, the information eIsland will get is still limited.

Mr Flynn declined to comment on the O'Brien consortium's bid of €1.10 (87p) a share for Eircom's non-mobile assets, valuing it at €2.42 billion. Nor did he seem concerned that eIsland would be privy to better-quality information, as it has signed confidentiality agreements with Eircom.

Mr Flynn stressed his consortium's interest in Eircom was still a long way from becoming a bid. "There may not be an offer," he said.

Mr Flynn is a former president of Newbridge Networks which supplies networking equipment to telecoms companies. After its sale to French telcoms group Alcatel last March, he became president of Alcatel's carrier networking group and carrier Internetworking group.

He knows Eircom chief executive Mr Alfie Kane through his prior dealings with Eircom.