He may be right, but the last thing beleaguered Eircom shareholders need right now is the company's chief executive, Alfie Kane, admitting the price was set too high at the flotation.

It is little consolation to the half-million investors sitting on losses with a massive overhang in the market as KPN finalises its plans to sell its 21 per cent stake in the company into the market to institutional and retail investors, while Telia keeps the markets guessing over when it will dispose of its 14 per cent share.

As Mr Kane says, the price for the then Telecom Eireann was set at a 30 per cent premium to its peer group in the telecoms sector. There seems to have been little reason for doing so except to maximise the return for the Government, which was deciding the price in the shape of the Minister for Public Enterprise, Mary O'Rourke, and for the advisers, one of which certainly encouraged to set the price even higher.

The taste left in the mouths of smaller investors was even sourer as many institutions for some reason then quickly sold their stock into the grey market, taking quick profit at the top price while ordinary investors were barred from the game. The Minister and the advisers would do well to take into account the experience of Eircom shares and the consequent disillusionment of the public when considering the future sell-off of other State assets.