Eircom is considering a €2 billion bond issue with a view to replacing short-term debt to Irish and UK banks.
A final decision may not be taken for a couple of months but the move is thought by Eircom to be a suitable one for a company with such predictable cash flows.
The issue could generate up to €150 million in cash but whether that would be issued to shareholders would only be decided some time after any bond issue.
The €200 million the company gained from the sale of the Yellow Pages still remains on the company's balance sheet.
Eircom is owned by a consortium that includes Sir Anthony O'Reilly, Mr George Soros, Providence Equity Partners and the Eircom Employee Share Ownership Trust. The consortium borrowed €2.4 billion to buy the company.
The bonds initiative is that of Mr Philip Nolan, who took over as Eircom chief executive a few months ago. The bonds could be issued between October of this year and March 2003, if the plan is proceeded with, and would be for terms of up to 25 years.
Eircom is being advised on the matter by Goldman Sachs, Deutsche Bank and Barclays. A spokesman said no final decision on the bonds issue had yet been made. He added that no decision on a cash distribution - in the event of a bonds issue going ahead - had yet been made.
