Babcock & Brown has put Eircom's 300 phone masts up for sale. The Australian investment group is believed to have placed a minimum valuation of €150 million on the assets and drawn up a shortlist of about 12 interested parties. Ciarán Hancock, Business Affairs Correspondent, reports.

It is understood that the masts generate revenues of about €10 million a year for Eircom. About €3 million annually of this is earned from third parties, including mobile operators Vodafone, O2 and 3, and wireless telcoms companies.

Eircom and its mobile arm Meteor are the biggest users of the masts. Babcock & Brown is believed to have decided it no longer needs to own the masts, once Eircom is guaranteed access to them.

The sale process has been ongoing for a number of weeks and is being handled by Babcock & Brown's merchant banking arm in London.

A second round of bidding is thought to be under way and the process is expected to take at least a month to conclude.

Babcock & Brown is believed to have inserted a clause in the sale that would require the new owner to share any upside from potential property development.

A spokesman for Eircom confirmed the company was undertaking a review of the masts business.

"The company is exploring an option to sell the masts but no final decision has been taken by the board," the spokesman said.

He said customers would not be affected by any change of ownership. Eircom and third-party users of the masts would maintain their access to the facilities.

Eircom's masts are dotted around the State. Some are placed on hills and mountains, while others are attached to Eircom buildings and telephone exchanges in urban areas.

Financiers said the potential exists for a new owner to increase the number of customers using the masts and possibly to rationalise the network.

No Eircom staff are expected to transfer with the business, which is part of the wholesale networks division.

It is understood that Babcock & Brown approached a number of leading Irish businessmen, property developers and investment groups to gauge their interest in the masts business.

These are thought to include property developers Sean Dunne and Liam Carroll; entrepreneur Denis O'Brien; infrastructure groups NTR and One51; and equity players Quinlan Private and Ion Equity.

A number of UK players were also approached, including National Grid Wireless, which is owned by Australian investors Macquarie.

More than 20 expressions of interest were received.