Shares in Conduit rose by almost 10 per cent yesterday following an announcement by 3i Group that it had agreed to buy Sonera's directory inquiries business. This includes a 10 per cent stake in Dublin-based Conduit and a 45 per cent stake in its UK joint venture, 118 Ltd.

Analysts said the sale by Finnish firm Sonera had been expected for some time and would remove a stock overhang which was weighing down Conduit's share price. Mr Liam Young, chief executive of Conduit, said the firm would hold discussions with 3i group, particularly about the future of its UK directory services business. Conduit's UK joint venture, 118 Ltd, will need at least €20 million (£16 million) investment over two years to make inroads into the UK directory business. Therefore, the firm requires a partner willing to invest heavily in the business. A spokeswoman for 3i group would not comment on the matter yesterday. But Mr Liam Young said Conduit retained pre-emptive rights to buy out Sonera's 45 stake in 118 Ltd before it was sold to 3i Group.

He said the firm would consider whether to exercise these rights following discussions with 3i Group. Conduit has a cash pile of €30 million and would consider a share placing. "We don't think this is necessary at this stage," said Mr Young. "But it is always a possibility."

Conduit's shares closed up 58 cents at €5.33 yesterday, an increase of almost 10 per cent.