ROUNDUPS
In the papers 11 February
11-02-2003
by John Cradden
Valentia Telecommunications has recouped almost EUR40m in costs following its takeover of Eircom | A group of Alphyra shareholders may block management's MBO
The Irish Times reports that Valentia Telecommunications, which acquired Eircom in November 2001, has recouped almost EUR40 million in costs from the former state phone company. Accounts for Valentia, which is chaired by Anthony O'Reilly, show that the various members of the consortia all recouped their acquisition costs from Eircom within months of the takeover.
The paper also reports that Tesco Ireland has confirmed it is to transfer its IT operations overseas, but would not comment on reports that 16 permanent staff are to be offered alternative positions or that 50 temporary workers will be let go when their contracts expire, as noted by ElectricNews.Net earlier this week. The group is relocating its computer administrative department in a move that will synchronise its IT systems with those of its British and mainland European divisions.
The same paper reports that a group of Alphyra shareholders with sufficient strength to block any management buyout is said to be working with Dublin stockbroker NCB to examine ways to encourage a higher offer for the company. Funds with money invested in Alphyra indicated that the NCB group could control up to 30 percent of the stock -- enough to stop the management buyout (MBO) team securing the 80 percent it needs to win outright control of the group. A spokesman for NCB refused to comment on the news.
In related news, the Irish Independent reports that Euronet Worldwide, the US payments software company, had indicated some weeks ago that it had no interest in mounting a takeover bid for Irish e-payments company Alphyra. Advisers to the non-executive directors, Nick Koumarianos and Grant Williamson, had contacted Euronet as part of their trawl of possible suitors soon after Alphyra's management team announced that they were considering the possibility of a bid.
The same paper reports that the rollout of the government's EUR65 million national broadband scheme to deliver high-speed Internet access around the country began yesterday with the launch of the Cork city ring worth EUR11 million. Over the next couple of years, 50,000 kilometres of Internet cable will be installed from Cork to Donegal throughout 19 towns up and down the country. See the full story as reported in ElectricNews.Net
The Wall Street Journal reports that the European Commission proposed setting up a pan-European agency to boost Internet security and counter the threat of cyberattacks and related crimes. The new body, with a proposed budget of EUR24.3 million (USD26.3 million) over five years, would advise governments on Internet security.
The Financial Times reports that Simon Duffy, finance director of Orange, has indicated he will look closely at other job opportunities in the event he is passed over as successor to Jean-Francois Pontal as chief executive of the UK mobile operator. Pontal announced his resignation in December, triggering a long-drawn succession battle that has led to tensions between the French and British arms of the company, which is 88 percent owned by France Telecom.
The same paper reports that PCCW, Hong Kong's dominant telephone company, has called off its attempts to lure Britain's Cable & Wireless into takeover discussions. In a statement to the Hong Kong stock exchange, PCCW said, "The company has concluded that it is not in the company's interests for the uncertainty regarding any possible takeover offer for C&W to continue."
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