Newtel, the group that was bidding to take over Esat telecom at $72 (€71.27) a share - an offer already dismissed by the market as too little - is in disarray as its parent group, the merging state telecoms groups of Sweden and Norway - Telia and Telenor - have spurned each other at the altar in an acrimonious dispute over power within the new group.

The Newtel bid must be dead in the water, even if, technically, it is still in play. That leaves open to question the continuing position of Telenor, currently a 49.5 per cent shareholder in Esat's mobile phone subsidiary, Digifone. Now that Esat is clearly labelled a takeover target with a discordant shareholder on board, it remains to be seen who, if anyone, will follow up for the kill.

The other question is what the focus on the Irish telecoms market that the Newtel bid sparked will mean for Eircom. Already KPN and Telia have indicated their intention of selling their 35 per cent stake in the company, although Telia may reconsider the future for its 14 per cent now. Certainly, given the share's poor performance, it might prove attractive to bidders in its current dishevelled state.