Eircom, which had been mulling a flotation of the business, has announced it will not now be proceeding with a return to the stock markets after its shareholder-lenders told management they did not support the idea.

The company, which initiated a strategic review earlier this year and also tapped the market for private trade and financial buyers, says it will not proceed with a flotation “at this time”.

“We have discussed this decision with our key shareholders. These shareholders expressed their clear preference to continue participating in the upside from the significant network investment made in recent years, which has only recently begun to manifest itself in the company’s operating and financial results,” the company said.

The company had already restructured its ownership to a Jersey company to allow it to pay dividends in the event of a flotation. It had also submitted documents to the Central Bank.

In recent months, it also ran a parallel process to seek a buyer, but was rebuffed by several private equity houses as the company has yet to return to growth. Earnings have stabilised but its revenues are still falling.

Eircom said: “There are encouraging signs of positive momentum in the business. Our primary focus over the coming months will be to accelerate this momentum, to continue to improve our financial performance and to realise the benefits of our significant investment programme which will deliver value to all our stakeholders.”