Belgium's top telecom operator Belgacom set a price of between €23 and €26.5 yesterday for its public offering later this month, valuing the company at €8 billion to €9.3 billion.

Belgacom's bankers met on Saturday to discuss the valuation of Europe's largest initial public offering (IPO) in years, which will kick off on March 22nd, when the final offer price will be released.

But fund managers suggested earlier that the price could be near the bottom of the indicative price range to attract attention for a stock with low top-line growth prospects.

Belgacom's foreign shareholders - SBC Communications, Singapore Telecommunications and Denmark's TDA - have been driving plans to list the company.

They are selling their 46.9 per cent stake, while the Belgian state plans to keep a 50 per cent stake plus one share.

The news came a few days after Eircom set the stage for its return to the stock market by pricing its shares between €1.48 and €1.75, valuing the company at up to €1.26 billion.

Belgacom, the government and its advisers have sought to map out a future for one of Europe's smallest former telecoms monopolies for about a decade. But merger attempts, often designed in part to bring the group to market, have been foiled.

Belgacom's book-building road shows with institutional investors kick off on Monday. But fund managers said on Friday Belgacom might struggle to woo investors unless it prices Belgium's top telecoms group under €25 given its low growth prospects.

Although Belgacom is one of the few European telecoms groups with virtually no debt, it faces stalling customer and revenue growth and offers a low dividend yield, they say.

Belgacom has said it has already bought back €325 million in shares - which will be cancelled - and will buy back up to €1 billion more. - (Reuters)