Telecom Eireann shares will be floated on the New York Stock Exchange, the Minister for Public Enterprise, Ms O'Rourke, has confirmed. "The choice of New York is seen as a reflection of interest that prevails in the United States in Irish companies," she said.

The Government is expected to float up to 35 per cent of Telecom in June and the sale is expected to generate in excess of £1 billion (€1.27 billion). Most of these monies will go towards topping up a pension fund for those employed in Telecom when it was part of the Department of Post & Telegraphs.

Ms O'Rourke said the decision of what to do with the proceeds of the share offering would be a matter for the Government. She reiterated her desire to see a wide take-up of Telecom shares by the public. She was speaking in the Dail yesterday during the second stage of a new Bill to clear the way for the share offering.