Eircom, which is mulling a possible flotation later this year, plans to shift its holding company from Luxembourg to Jersey to "provide . . . greater flexibility to pay dividends to shareholders in the future".

The company yesterday announced the start of a formal process of consultation over the proposed move with the consortium of lenders that own the company. It will remain tax resident in Ireland with "all management and operations" remaining in this State, it said.

“This reorganisation, if implemented, will not have any impact on Eircom’s operations. Nor does Eircom expect that the reorganisation will have any impact on [our] customers or business partners.”

The company’s main operating and holding entities were moved to Luxembourg as part of a corporate reorganisation when lenders took control following its 2012 examinership.

In April, Eircom announced it was undertaking a formal review, advised by Goldman Sachs, Rothschild and Morgan Stanley, of its future "strategic options", including a possible flotation that could value it at between €2.5-€3 billion.

Earlier this summer, it was reported Eircom would aim for a September flotation, although it now seems unlikely its board will make a decision in time to execute a dual Dublin-London flotation by then.

Eircom will announce its annual results on August 29th, and the company is not believed to be preparing what one source called “any other significant announcement” then.

It is understood that no final decision has yet been taken on whether to float or seek a trade or financial buyer.

Since Eircom announced it was considering an IPO, giving its lender-owners the chance of an exit, the appetite for European initial public offerings has waned. Institutional investor BlackRockhas criticised the quality of some recent IPOs. It said many private equity-backed flotations were undermined because companies could not reach initial financial targets.