3 network's Asian owner Hutchison Whampoa rules out interest in Eircom

HUTCHISON WHAMPOA (HWL), the Asian firm that owns the 3 network in Ireland, has ruled out an interest in telecommunications company Eircom.

“HWL is not in talks on Eircom,” the company said in an e-mailed statement yesterday.

HWL had previously been the subject of speculation that it was going to be involved in the company’s impending debt restructuring. The Hong Kong based conglomerate has interests in everything from port operators and retailers to property development and infrastructure to telecommunications operators.

Last week Eircom, the former State company, said it had received two proposals and an approach from a third party to restructure the company’s financial position.

The proposals are from the owners, Singapore Technologies Telemedia, and the Eircom employee share ownership trust (ESOT).

While the third party has been reported to be Digicel, the mobile telephone company controlled by Denis O’Brien, Eircom was not willing to comment yesterday.

Eircom has outstanding debts of about €3.75 billion.

On Friday, it told its lenders that its earnings for the quarter to September 30th would show “a significant reduction” compared with the same quarter a year earlier.

In September, the lenders agreed to waive their debt covenants until December 15th, thereby averting a possible default.