Telecom Eireann has appointed ABN AMRO Rothschild as its financial adviser for the Initial Public Offering (IPO), which will take place next year. It is understood that the contract is worth up to £2 million.
The Government has not decided yet how much of Telecom will be offered for sale, nor when this will take place. However, June or September are thought the most likely dates and up to 51 per cent of Telecom which is valued at up to £4 billion, could be offered.
ABN AMRO Rothschild is a joint venture which combines the corporate finance arm of Rothschild's with ABN AMBRO'S broking and research expertise. It is understood there was keen interest in the contract. Overseas companies who tendered are believed to include Goldman Sachs, SCB Warburg and Morgan Stanley. Irish-based financiers who tendered include IBI and NCB.
It is understood that Davy Stockbrokers did not tender, because it is adviser to Esat Telecom, competitor to Telecom Eireann in the Irish market. AIB Capital Markets did not tender either, as it is already advising the Government on the IPO.
Rothschild's is also involved in advising Telecom on the sale of its 75 per cent stake in Cablelink. This is expected to be offered for sale later this year.
ABN AMRO Rothschild has been involved in several telecommunications share offerings. It is currently advising Swisscom on its forthcoming share offer and colead the management of Deutsche Telekom's $13 billion IPO. It also advised Dutch telecoms group KPN a shareholder in Telecom Eireann on its global strategy.
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