SWISSCOM IN TALKS WITH EIRCOM ESOP - The Irish Times reports that advisers to Swisscom have opened talks with the trust that holds 20.6% of Eircom on behalf of its staff and retirees, quoting sources familiar with the process.
The paper says that while this dialogue is in only its opening phase, the Eircom employee share ownership plan (Esop) is considered likely to engage in a transaction with the Swiss company if a way can be found to offer Swisscom shares as an alternative to cash. Such a structure would be the most tax-efficient for Esop members.
The paper also says that Eircom and Swisscom are more interested at this stage is the stance of the Australian investment fund Babcock & Brown Capital, which owns 12.5% of the Irish company. It is not yet known whether the Australians will do business with Swisscom at its indicative price of 'a tad above' €2.40 per share.
The Irish Times quotes sources as saying that while the 12.5% stake could complicate the process by putting pressure on Swisscom to increase its offer even in the absence of another bid.
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AER LINGUS 'FLY ANYWHERE' DEAL - The Irish Independent says that after 18 months of negotiations, Aer Lingus has agreed a 'fly anywhere' deal with unions for cabin crew. Under the terms, Aer Lingus can fly to any airport in the world.
The paper says it has also an agreement which will allow it to reduce the number of cabin crew flying on existing routes, but has failed to agree terms to cut time off for crews between long-haul flights.
The Indo says the new deal has been signed off by officials from both Impact, for about 95% of cabin crew, and SIPTU for the remainder.
But it is still subject to the sides agreeing a 'productivity deal' and a subsequent ballot of cabin crew. The productivity deal will detail how much Aer Lingus is willing to offer in compensation for changes in the 'fly anywhere' agreement.
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ALLIANZ PLANNING MASSIVE LAY-OFFS - The Financial Times reports that Allianz, Europe's biggest insurance group, is planning to lay off up to 11,000 staff, most of them in Germany.
The FT says this is the latest sign that Germany's most successful companies are pressing ahead with efforts to cut costs. The Munich based insurer said on Thursday night it was too early to be precise about the number of job cuts.
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ARCHITECTS SEE RED OVER EYE SALE - The Independent says the future of the London Eye was safeguarded yesterday after British Airways sold its stake in the visitor attraction to the Tussauds Group for £95m.
But the paper quotes the architects who designed the Eye and also own a 33% stake in the business as saying that BA had 'knifed them in the back' by selling its stake to Tussauds.
David Marks and Julia Barfield had been working on submitting a joint bid with Tussauds to buy out BA, and said yesterday BA had 'betrayed' them by selling exclusively to Tussauds.
