An Irish multi-millionaire with a background in telecommunications has expressed an interest in Eircom's non-mobile business.
Mr Pearse Flynn, from Cork, could not be contacted yesterday, and it is uncertain whether his interest will turn into a counterbid to the conditional €2.42 billion offer for the Irish telecoms group from Mr Denis O'Brien's eIsland consortium.
But it is understood that Mr Flynn, formerly president of carrier networking at a French telecommunications equipment company, Alcatel, and president of a Canadian networking equipment company, Newbridge Networks, was in contact with Eircom as recently as two weeks ago to obtain information.
He is familiar with Eircom through its dealings with Newbridge Networks and with the advanced technologies which the former State telecoms company will have to introduce to develop its business.
Mr Flynn is the third wealthy Irishman to cast an eye over Eircom. Last November Dr Tony O'Reilly took a tentative look but is now thought to have abandoned interest.
Mr Paul Coulson, chairman of the financial services group Yeoman, approached Eircom's largest shareholder, the Dutch telecoms group KPN, about a possible purchase of KPN's 21 per cent stake. Talks between Mr Coulson and KPN broke down in mid-December before they had even reached the stage of a price for the KPN stake.
It is understood Mr Flynn has maintained regular contact with the company for some months and has been kept apprised of the developing situation with the eIsland consortium.
While some sources said Mr Flynn should be seen as a serious possibility for a bid, his approaches have so far gone no further than requests for information.
The Eircom board is understood to regard eIsland's bid as too low and is considered unlikely to accept the offer, which it believes would give Mr O'Brien the company at a knockdown price.
But the board is also aware that if it rejects the eIsland approach it will have to offer shareholders some coherent alternative strategy. A counterbidder like Mr Flynn could give the board the opening it needs to reject Mr O'Brien's €1.10-a-share offer and look for more.
In his late 30s and originally from Ballycotton, Mr Flynn is regarded in the telecommunications industry as an able and steely executive. After his promotion from vice-president to president of Newbridge Networks in November 1999, he cut 750 jobs, then negotiated the $7.1 billion sale of the company to Alcatel in March last year.