FOUR-WAY SPLIT FOR EIRCOM BUSINESS? - The Irish Times reports that Eircom's owners are looking at the possibility of splitting the group into three or even four separate units when they move ahead with the formal separation of its network and customer service divisions.
The paper says the issues under consideration include the feasibility of creating a core network business for wholesale clients; a retail offering for domestic and mobile users; and a business offering for the commercial sector.
It adds that the separation of mobile arm Meteor from the rest of the retail business is also being considered.
The paper says the separation is anticipated in the shareholder deal between majority shareholder Babcock & Brown and the Eircom employee share ownership trust.
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PERMANENT TSB TO UP MORTGAGE RATES - The Irish Independent says Permanent TSB is set to increase its mortgage rates in a move that reflects the higher costs of wholesale money.
The paper says the move was notified to mortgage brokers yesterday on the same day the European Central Bank decided to again keep base interest rates on hold.
The Indo says Permanent TSB is also in talks with mortgage brokers about cutting the commissions it pays them, following a move by Ulster Bank to halve commission rates.
The Permanent TSB rate change also follows a similar rates rise by Ulster Bank in the past few days.
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ROCK SALE PROCESS IN TROUBLE? - The Times reports that the British government's carefully orchestrated auction of Northern Rock appears to be unravelling after one bidder walked away and another appeared to be falling out of the race.
The paper understands that JC Flowers, the American private equity firm, has told the Treasury that it would no longer compete for the stricken mortgage bank because it could not structure a deal that would keep both the British government and shareholders happy.
The Times said a bid from Olivant, the investment group run by Luqman Arnold, was also hanging in the balance after it emerged that the firm was refusing to sweeten its takeover proposal.
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GERMAN FIRM WINS EMAP AUCTION - The Financial Times reports that UK media group Emap has secured a better than expected offer for its consumer magazines and radio businesses but has failed to sell its larger exhibitions and trade magazines division.
The FT says H Bauer, the German publisher of Bella and Take A Break, won the auction for magazines such as Heat and Grazia and radio stations including Kiss and Magic with a late bid of about £1.15 billion.
