The decision by Europe’s fifth largest cable television operator, Dublin’s Cablelink, to make itself available for sale looks set to spark a battle between a number of major cable concerns for the takeover of the company. Reports in the Irish press that the Republic’s own telecommunications operator, state-owned Telecom Eireann, is near to closing what would be a largely defensive deal may be premature, as a number of interested parties – as yet unnamed – have been given the chance to consider a purchase. Telecom Eireann has consistently refused either to confirm of deny speculation of an impending move to buy the business, but rumours are circulating of interest from several European and North American cable operators – and it seems likely that several of the Baby Bells, led by Pacific Telesis Group, will be interested. Sources close to the Dublin cable network say the Irish government, which has an 80% stake in Cablelink via state run Radio Telefis Eireann, has received a bid from Finnish media group Fanoma and has been subject to inquiries from at least one US company; it is thought that Rupert Murdoch’s Sky is preparing a bid and, if it is, few will be surprised if his old adversary Robert Maxwell makes a counter offer. The UK’s United Cable is also thought to be in the running, and British Telecommunications Plc, barred from the business in the UK, may also be interested. Cablelink has one other shareholder: as well as Radio Telefis Eireann, the state-owned broadcaster, which has come in for a widespread internal criticism over the decision to sell the business, the other 20% of the shares are held by Allied Combined Trust, a subsidiary of the Allied Irish Bank. Independent observers disagree over how much Cablelink is worth – valuations range from a high of $70m to a low of $45m, but it does make money: last year it made operating profits equivalent to $3.6m on a turnover of $19.4m; it provides a 10-channel cable service to 220,000 subscribers, predominantly in Dublin, but also in Waterford and Galway. It started operating in its current form in 1984, and employs 145 people. The names of the companies that have bid should be made public in in mid-February.
