Cantrell & Cochrane is gearing up for a stock-market flotation in the spring or early summer of 2002, if market conditions improve in that time. News of C&C's planned flotation came with the appointment of Mr Maurice Pratt - currently chief executive of Tesco Ireland - as group managing director from January next year. Group managing director Mr Tony O'Brien, who has headed C&C for the past 20 years, will then become chairman of the group.

Mr O'Brien said a flotation was C&C's priority but added that it would be easier to assess the appetite for such a move early in the new year. He said previous slumps in international equity markets after the Gulf War in 1991 and the Asian financial crisis in 1998 had been comparatively short-lived and that six months after those events the markets had recovered.

C&C had been lined up for a flotation - to the extent of preparing for investor roadshows - in 1998 by its then owner Allied Domecq, only to abort those plans after the Asian financial crisis.

In January 1999 C&C was sold to the British private equity group BC Capital and an eight-strong management team headed by Mr O'Brien for €734 million (£578 million). Eighteen months later, the management team has taken its stake in C&C to 8 per cent with BC Capital holding the balance.

"We're still preparing for a late spring or early summer IPO, but that will depend on market conditions. We have to be pragmatic," said Mr O'Brien. He said that if a decision was taken to float, a sizeable amount of new equity would be raised to reduce C&C's hefty debt - the group had debts of €768 million at the end of September 2000.

The 2001 results, to be published in a few weeks, are not expected to show any significant reduction in net debt given C&C's hefty interest payments - €68 million last year - and also the substantial capital investment over the past year.

While BC Capital will have to sell some of its stake into a flotation, the market will expect BC to retain a shareholding to show its confidence in the future.

Asked what market capitalisation C&C would need to go ahead with an IPO, Mr O'Brien said: "The market cap we see is €1.2 billion to €1.3 billion. That would put us in the lower end of middle-cap stocks. He added that while markets now were difficult, one factor in C&C's favour was the move away from technology stocks.If a flotation does go ahead C&C will target British and European institutional investors, while an ADR listing in New York for US investors would also be considered. Irish institutions, which have been disengaging from Irish stocks, would also be involved, with a listing for C&C shares in both Dublin and London.

Mr O'Brien said the appointment of Mr Pratt as group managing director was a key element in the planning for a flotation. "Maurice Pratt comes to us with a fine reputation. He's charismatic and dynamic and that is always necessary for a flotation. We had to look at the IPO and beyond and see who would command the respect of the investment community. It was felt that it was time to introduce a fresh external perspective on his own position, Mr O'Brien said: "I'll be as executive a chairman and non-executive a chairman as the situation warrants. My role will be able to oversee the flotation and secure a smooth transition." He added that given that a flotation would dominate thinking over the next six to nine months, C&C was unlikely to make any major acquisitions in that period. Since its sale to BC, C&C has bought the Tayto snack foods group for €74 million and Findlater Wine Merchants for €19 million.

Mr Pratt has been chief executive of Tesco Ireland for the past four years. The supermarket chain bought Quinnsworth three years ago and, since then, its sales have risen to €1.5 billion with an estimated market share of 24 per cent.

Tesco has appointed Mr Gordon Fryett to replace Mr Pratt as chief executive.

Mr Fryett has 30 years' experience with Tesco and most recently has been director of Tesco's international support office. He will take over his new position after a three-year transition period.

Tesco is also in the process of appointing a non-executive chairman for its business in Ireland.