The buyout of Eircom by the Australian investment fund Babcock & Brown and the Eircom employee share ownership (Esot) trust moved a step closer after a scheme of arrangement for the €2.36 billion transaction was lodged in the High Court in London.
The submission of bid documentation to the court on Wednesday was a requirement under the rules of the takeover panel in Britain, where Eircom is registered. It will dictate the timetable for the sale process.
Although Eircom is not domiciled in Britain, its affairs are subject to rules of the UK panel.
While Eircom's board has approved the deal in principle, it cannot issue a formal recommendation to shareholders until it considers the full scheme of arrangement. Such a recommendation is considered a formality at this stage and it is likely to take place next week.
The scheme documents themselves will not be made public until a recommendation is issued. They will then be circulated to shareholders. While that process is taking place, members of the Esot will be asked to approve a transaction that will increase the trust's share of the company to 35 per cent from 20 per cent. The Esot is likely to circulate its own bid documentation next week or the week after, with a ballot to conclude by mid-July.
The extraordinary general meeting of shareholders which will be asked to approve the deal will take place at the end of July, probably on the same day as the company's annual general meeting. That meeting is likely to sanction Eircom's second departure from the stock market since it was privatised in 1999.
Eircom's new owners have said their basic business case is predicated on the company retaining its current structure. However, they are open to a discussion on the potential separation of the network side of the business from the retail side.
They say that would require a change of Government policy. The Government's view of this matter is not known.
The question of whether a new senior management team will be installed in Eircom after the deal is completed at the end of August or early September remains unresolved.
A former BT executive, Pierre Danon, has been appointed chairman designate to succeed Sir Antony O'Reilly who will step down once the sale is complete.
