ONE MORE THING: EIRCOM IS expected to announce the appointment of a new chief executive in the next fortnight, a decision that could have far-reaching consequences for the troubled business, writes CIARÁN HANCOCK
Sources say that executive search group Whitehead Mann has been quietly leading the hunt for a new boss to fill a role left vacant by Aussie Rex Comb.
I understand that three candidates have been interviewed for the role. This includes acting chief executive Cathal Magee, who latterly headed Eircom’s retail division. Two others with industry experience are thought to be in the frame. Both are said to be based outside Ireland.
The position is in the gift of the Sydney-listed entity that owns Eircom – formerly known as BCM but now called Eircom Holdings – although the employee Esot, which owns 34 per cent of the Irish business, has a considerable say in the appointment.
Without knowing the identity of the other candidates, Magee seems the obvious candidate to land the position. He has served his time at Eircom, has a reasonable relationship with the unions, and understands the political nuances of dealing with the regulator and the government.
This is where previous owner group Babcock Brown fell down on the job. In the light of Rob Topfer’s opportunistic recent bid for Eircom, Magee has also signalled publicly that the Irish telecoms group needs to take its destiny into its own hands and not leave it for someone in Sydney or beyond to decide its fate.
With nearly €4 billion in debts, a declining business and a massive pension fund deficit, the last thing Eircom needs is another opportunistic, financially geared takeover with the sole aim of maximising the return to shareholders over a five-year period to the detriment of the business and its creaking network.
There is a concern within the unions that a new chief executive from outside the company would be heavily incentivised, possibly even to sell the company.
This wouldn’t sit well with workers at a time when the company is seeking to shed 1,200 people from its payroll.
In addition to Topfer’s bid, Eircom Holdings is believed to have received at least two other offers for the business. One from a private equity player and one from an industry group, thought to be Singapore Technologies Telemedia.
