Telecom Eireann has taken a controlling stake in Golden Pages which produces the well-known Golden Pages directories and the classified telephone directories.
Golden Pages, believed to be highly profitable, has an annual turnover of £30 million. It employs around 200 people in Ireland. Telecom had a 49 per cent stake, while ITT, the international group which owns hotels around the world including the Sheraton Hotel chain, held 51 per cent. The price Telecom paid has not been disclosed.
It is understood that staff at Golden Pages were informed of the sale to Telecom yesterday. Telecom has increased its stake to 63 per cent. ITT is to retain the remainder.
A spokseman for Telecom confirmed last night that it had signed a contract yesterday to increase its shareholding to 63 per cent. "The contract has been signed subject to the necessary regulatory authorities approval," the spokesman said.
It is understood that the deal will go before the Competition Authority for its approval.
Telecom has been involved in Golden Pages, which is based in Ballsbridge, Dublin, since 1984. Golden Pages produces a separate directory for Dublin, but is combined with the normal telephone directories for areas outside the capital.
Golden Pages is a strong brand name and it is understood that Telecom was keen to consolidate its so-called white and yellow pages business - a trend which has been happening across Europe. Golden Pages distributes almost 1.5 million directories a year in Ireland. ITT is also involved in educational and directory publishing. In 1996 it made pre-tax profits of more than $1 billion (£719 million) up 11 per cent on 1995. It also began a review of its publishing and educational services. For Telecom the purchase of Golden Pages is the latest in a series which it has embarked upon over the past number of months. Last August the company bought out its partner Motorola in the paging system Eirpage. Telecom already had a 51 per cent stake in that company. Some 40,000 people use the service which has annual revenues of £3.5 million.
Then in November Telecom bought Indigo, the Internet service provider, for a price close to £2.75 million. The company has around 10,000 subscribers.
