Mr Paul Coulson, the millionaire businessman, has reentered the contest for Eircom with less than two weeks to go until the deadline for bids expires. Mr Coulson, who first expressed interest in the telecoms company last October, has contacted the company's advisers in recent days, according to informed sources. The businessman's last approach focused on buying the 21 per cent of Eircom held by KPN, the Dutch telecoms group.
It is not clear whether he is once again looking at buying a stake or making a bid for the entire company which is valued at #2.5 billion following the sale of Eircell last week. KPN and Telia, the Swedish telecoms company which owns 14 per cent of Eircom, have both indicated they want to sell their shareholdings quickly if the current approaches do not lead to a takeover of the group. This would present an opportunity for Mr Coulson.
Sources said last night that the businessman may have been flushed out by Goodbody Corporate Finance and Merrill Lynch's decision to set a deadline for indicative offers.
Three consortia are participating in the process and will receive extensive briefings from Eircom management in the coming days. The Valentia consortium, which is chaired by Sir Anthony O'Reilly, will meet Mr Alfie Kane, the Eircom chief executive, and Mr Peter Lynch, the finance director today. Sir Anthony is not expected to attend and the talks will be led by Mr John Hahn, the managing director of Providence Equity, one of the four venture capital companies in the consortium.
Eircom's capital spending requirement is expected to come under scrutiny as it will give prospective investors an indication of how much money they will have to invest in the business in addition to the #2.5 billion plus purchase price. IIU, the investment company controlled by Mr Dermot Desmond, will meet the company management on Friday. Mr Michael Walsh of IIU is expected to lead their team. EIsland, the consortium assembled by Mr Denis O'Brien, will receive briefings early next week.
Mr Coulson may be seeking to take part in the round of briefings but he will be hard pressed to meet the deadline for bids as he has not carried out any due diligence to date. The businessman was travelling yesterday and not available for comment.
An accountant by training, Mr Coulson (48) is the principal of Yeoman International, a diversified investment company which grew out of a leasing business established in the 1980s. The company almost collapsed after a disastrous merger with a British leasing group CLF, but its fortunes were restored after a £35 million out-of-court settlement with advisers, SG Warburg. Yeoman has gone on to make a number of investments and now controls Tipperary Crystal as well as having a 15 per cent stake in Ardagh, the glass bottle manufacturer.
Mr Couslon chairs the company and together with 32 per cent shareholders Merrill Lynch Investment Managers effectively controls the business. MLIM - formerly Mercury Asset Management - is one of the largest investment houses in Britain and has yet to be linked with any consortium bidding for Eircom and are considered likely partners for Mr Couslon.
