The Government has radically shaken up the board of Telecom Eireann in an effort to ensure a successful sale of the company's shares, which is expected to raise £1 billion on the stock market.
Four of the Government appointees have agreed to step down. But one director, Mr Paul Mackay, who is a trustee of the Progressive Democrats, has declined.
A leading US telecommunications figure is to chair the restructured board, and the appointment of several senior Irish business figures as directors is understood to be imminent.
The chairman of Telecom Eireann, Mr Ron Bolger, former managing partner at accountancy group KPMG, has agreed to become deputy chairman. He will be replaced by Mr Brian Thompson, former vice-chairman of Qwest, a US telecommunications company.
It is understood that the Government's advisers, AIB Capital Markets and Merrill Lynch, told the Minister for Public Enterprise, Ms O'Rourke, that it was important to have people with experience of running public companies and also some directors with international telecommunications expertise.
The Minister signalled her intention to restructure the board before Christmas. She knows Mr Thompson since last year, as he served as chairman of the Advisory Committee on Telecommunications.
Ms O'Rourke said last night that Mr Thompson had "in-depth hands-on experience at the most senior levels in a range of telecommunications companies and wide experience of the international telecoms sector."
She added that she hoped to be in a position shortly to announce further appointments to the board.
The four board members who agreed to resign are: Mr Maurice Doyle, former governor of the Central Bank, who was appointed by the former public enterprise minister, Mr Alan Dukes, following work he did on the Luas project; Ms Evanne Kilmurray, appointed by Labour in 1996; Ms Marie Hurley, an accountant who was also a Dukes appointee; and Mr Gerry Wrixon, Professor of Microelectronics Research at University College Cork, also appointed by Mr Dukes.
It is understood that the Minister will offer those who resigned positions on other State boards.
Mr Paul Mackay, an accountant and a former Fianna Fail and Progressive Democrats treasurer, has declined to relinquish his board membership.
Mr Mackay said last night that he had been appointed only one year ago and hoped to remain for the five-year term. He believed that what the Minister was doing was correct.
But he said Ms O'Rourke had got enough people to relinquish their posts and he did not intend to resign. It is not clear whether Ms O'Rourke will try to remove him.
A spokesman for the Tanaiste, Ms Harney, who appointed Mr Mackay, said last night that the appointments were a matter for the Minister for Public Enterprise.
The 12-strong Telecom board consists of six Government appointees, the company chief executive, two worker directors and three representatives of KPN/Telia, the Dutch-Swedish telecommunications consortium which owns 20 per cent of the company and has an option to buy a further 15 per cent.
Ms O'Rourke said last night that she believed the combination of Mr Thompson, "with his wealth of international experience, and the skills of Mr Ron Bolger in handling the national market, can guide Telecom Eireann in the challenging times which lie ahead."
It is unclear whether Mr Thompson will be paid for his time. The post of chairman, a non-executive position, carries remuneration of £7,500 per annum. Mr Thompson is expected to be a very active chairman.
The Telecom flotation is likely to be highly successful. It will be in June or September, depending on financial market conditions, and should make the company the fifth-biggest on the Irish Stock Exchange with a valuation of around £4 billion (#5 billion).