The Kerry-born former chief executive of United Pan-Europe Communications has great interest in the opportunities arising in the Irish cable sector, he tells Jamie Smyth.
The Irish-born former chief executive of United Pan-Europe Communications, Mr John Riordan, yesterday signalled his interest in bidding for NTL Ireland.
But the experienced cable executive, who was born in Kerry, would not confirm that he had made a final decision to bid in the upcoming auction.
Citing legal difficulties over talking directly about the auction for NTL Ireland, Mr Riordan said he had a great interest in the opportunities that were arising in the cable sector.
He said it was an essential part of the Irish economy and it was important that a high level of investment was made in the cable sector. "The cable sector can play a major role in increasing productivity in Europe and helping countries meet the goals set out in the Lisbon agenda," said Mr Riordan, who is believed to be raising finance from the US venture capital firm Doughty Hanson to support a bid for NTL Ireland.
Mr Riordan claimed that the changes in the shareholding of all the major telecoms firms in the Republic over the past few years had meant that there was little focus on investing in networks.
"In my opinion, a big opportunity was lost, but it has not gone away permanently," he added.
He said promoting competition in a country's cable sector was the best way to ensure the best results and investment. The Netherlands, Sweden and the US were all good examples of how competition had worked.
Mr Riordan said he did not feel the upcoming auction for NTL Ireland would reach anything like the "crazy heights" seen in the 1999 sale of Cablelink.
He also said the outcome of the auction may be the context that would see him return to Ireland after many years living in Britain.
Mr Riordan joined the board of the pan-European cable operator UPC in 1998 and held several positions with the firm, including president and chief executive.
He has now retired from the board of UnitedGlobalCom (UGC), the firm controlled by US entrepreneur, Mr John Malone, which now controls UPC Broadband. UGC said last week in an interview with The Irish Times that it was also interested in bidding for NTL Ireland in an auction organised by Goldman Sachs. This could pit Mr Riordan against his former employers if he decides to submit a formal bid.
It is understood that Goldman Sachs will invite a shortlist of bidders to undertake due diligence on the company next week.
It is likely that UGC and Mr Riordan will be included on the shortlist. The auction shortlist is also likely to include a bid from Mr Denis O'Brien, possibly backed by the US firm Carlyle Group. It is possible that other bidders will emerge.
Seeking a "cable guy" with money: page 6
