Current account looks at C&C, problems with telecoms, and the closeure of three of Roches Stores SuperValue shops in Dublin and Limerick.
Things must surely be getting a little bit itchy over at C&C, the drinks and snacks firm that didn't quite make it to the market in 2001 but has been cited as the world's (well, Ireland's) most probable IPO ever since. The burden of expectation has weighed heavily on the firm for the past two years, as every peep of news on future plans has been subjected to the closest scrutiny by a market eager to deal in a new float.
And as Current Account knows only too well, information in a situation like this can be a dangerous thing, particularly when it lies beyond the subject's control. And so it was last weekend, when it emerged that BC Partners, the venture-capital investment firm that owns 90 per cent of C&C, was talking to potential buyers about how much it could get for the stake in a straight sale. Not a €1.4 billion IPO, but a sale.
There are a couple different ways of looking at this particular titbit, with the abandonment of float plans the first to come to many minds. The alternative and still-possible scenario would involve BC Partners, which presumably did not enjoy the failed flotation episode a couple of years ago, simply checking out its options so that it can be fully informed of all possibilities when IPO decision time actually arrives.
Current Account is told that no advisers have been appointed, either to BC for a sale or to C&C for a flotation so, on the face of it at least, the picture is still being drawn. The truth of the situation will no doubt emerge fairly soon, with C&C still assuring anybody who asks that an IPO is still the "preferred option" of all parties.
Whatever happens, the chances of C&C joining Eircom as a firm flotation candidate before the summer now look more than remote.The normally reticent Roches Stores forced itself to issue a statement this week announcing the closure of three of its SuperValu-branded supermarkets in Limerick and Henry Street and Blanchardstown in Dublin. The retailer refused to say how many, or if any, jobs would be lost.
It also left out something else. By way of explanation, the statement said Roches planned to expand its successful Henry Street format to Blanchardstown and Limerick. That success is down to what it calls a "unique mix of international brands", including Spanish label Zara, whose concession has reportedly been pulling in customers in droves.
But the statement did not say that Limerick will not be getting Zara, at least not courtesy of a SuperValu-free Roches Stores. Zara will only be going to Blanchardstown. The home of Munster rugby will have the consolation of other brands, such as Springfield and Pumpkin Patch. Unless, of course, Zara finds its own site in Limerick.
Current Account read with interest this week the comments of the communications regulator, John Doherty, that Vodafone, O2 and Hutchison have all complied with the terms of their third-generation licences. The 3G licences have been the source of much speculation since they were awarded to the firms in June 2002 by the former telecoms regulator, Etain Doyle.
Rather than hold a bidding auction for the four 3G licences offered by the State, the regulator chose to award them through a "beauty contest" to ensure a speedy and high-quality roll-out of the technology.
This raised the hackles of the Minister for Finance who wanted to get the best licence fee possible to boost the Exchequer's coffers. After a bitter year-long stand-off with Ms Doyle, the Minister backed down and the licences were sold off cheaply when compared with fees in other States.
By holding a "beauty contest", the regulator was able to insert aggressive roll-out targets and big penalty clauses into the licences to ensure delivery of a state-of-the-art 3G service. At least that was the theory. But things haven't turned out that way and Irish consumers are unlikely to be able to get a 3G handset until the end of 2004 at the earliest. So it would be reasonable to assume that this late delivery of 3G might trigger the penalty clauses in the licence, which are rumoured to be worth tens of millions of euro.
Not so, according to the Commission for Communications Regulation (ComReg), which says the firms have complied with the licences. And of course, we'll have to take ComReg's word for it as it has not yet made public the terms of the 3G licences. It also raises the question that, if we lag Britain on 3G, what was the point in selling the Irish licences on the cheap?
