Cable veteran tipped for Smart management role

The Irish businessman who guided communications giant UPC through restructuring may be about to take a management role in Smart Telecom.

Kerry-born telecoms executive John Riordan has been advising Smart's new owner, Kingspan principal, Brendan Murtagh, for a number of weeks.

The Irish Timesunderstands that he could be appointed to the company's management, although it is not known what post he will take if he joins Smart.

Mr Riordan is a respected figure in the telecoms business. Last year, he led a bid to buy cable TV operator NTL but was beaten by UGC, a company on whose board he served.

His offer was shortlisted alongside that of UGC's from an original four bidders. Mr Riordan's backer was British venture capital firm Doughty Hanson, which this year bought TV3.

He is best-known for the fact that he guided multinational United Pan-Europe Communications (UPC) through a period of court protection and restructuring during the nineties. He held a number of roles there, including president and chief executive.

Mr Murtagh took control of 90 per cent of Smart last month through Calally for a nominal sum, but inherited its €40 million debt. The company owes him around €4 million.

Smart owns the remaining 10 per cent of Calally. Mr Murtagh owns close to 20 per cent of Smart, and was its biggest backer.

Mr Riordan's involvement is taken as an indication that Mr Murtagh intends holding the company for the medium term rather than seeking a quick sale.

However, there has been continuing speculation that he could sell it, or that he will bring in another investor as a joint-venture partner.

In recent weeks, a number of companies have been named as possible suitors for the telecoms company.

One focus of speculation has been retail and voice operator Carphone Warehouse, but chief executive Stephen Mackarel put paid to that yesterday.

He told The Irish Times thatCarphone Warehouse regularly reviews acquisition opportunities in the Republic. "We have had preliminary discussions with a number of operators; however, we're not convinced that there is anything of any value for sale currently," he said.

Smart has 17,000 residential broadband customers and 160 large corporate clients. It operates 120km of broadband fibre in Dublin which Mr Murtagh and his family control.