FIFTH CHANGE OF OWNERSHIP OF EIRCOM ON THE CARDS - The chief executive of Eircom Paul Donovan has welcomed the announcement in Australia this morning that a deal has been reached between the owners of the company and Singapore Technologies Telemedia for the takeover of the company. Eircom Holdings Limited - the majority shareholder in Eircom which used to be called Babcock and Brown Capital - has released a statement to shareholders in Australia recommending acceptance of the latest STT offer. Details of the offer will be posted out to shareholders in November, and voted on at a shareholders meeting in Sydney in December. The ESOT - the employee share ownership trust which owns 35% of the company - has signed a co-operation agreement. If the deal goes through with Singapore Technologies Telemedia, this would be Eircom's fifth change of ownership since it was privatised in 1999.
***
KENTZ SEES BIG JUMP IN ORDERS BOOK - The Clonmel-based international engineering and construction company Kentz has reported pre-tax profits of $18.5 billion in the first six months of the year - that is a rise of almost 10%. It has also increased the value of future work on its books to $1.1 billion, including some major new contracts in Australia and the Middle East
The company's chief executive Hugh O'Donnell says that Kentz is very pleased to report higher profits considering the difficult current market. He says the firm is 'looking good' for the second half of the year as well. He says what is very important for the company is its backlog, which is up over 40% for the first six months of the year despite the depressed market. He says that Kentz has landed about $830m of contracts in the past few months - and is currently sitting at a record high of $1.4 billion of orders.
***
MAJOR OVERHAUL OF DIRECTORS URGED - There has been a lot of talk recently about the issue of corporate governance in this country. With what has been happening in our banks and in, for example, the state training agency FÁS, many have been asking about the role of the board of directors in all this. The Institute of Directors says there needs to be greater public scrutiny of the fitness of members of the boards of our big companies and institutions to serve.
The Institute of Directors' CEO Maura Quinn says that what is needed is a refocus on the whole standards of corporate governance in the country. She says this should be part of Ireland's strategy for economic recovery. She says that companies should look really seriously at how they select their directors and need to ensure that they are selected for their competence, their expertise and their experience. She also said they need to be properly inducted and properly trained. Ms Quinn also says there is a question whether people actually have the time to do the job right if they are selected to sit on many company boards.
Ms Quinn says that a potential director needs to have relevant experience, the time commitment and a detailed knowledge of the business.
***
MORNING BRIEFS - New figures from Ulster Bank this morning confirm further contraction in the construction industry. The Purchasing Managers Index for August stands at 38.8. Anything over 50 indicates growth, anything under 50 indicates the sector is contracting. The rate of contraction has slowed for the 5th month in a row having hit a record low in January, so the bank says the very worst seems to be over, although activity, new orders and employment in the construction sector all fell sharply again in August.
*** The Small Firms Association has released its Autumn Business Sentiment survey, with two thirds rating the overall environment as poor. Only half said they would maintain current employment levels, with 44% saying they will restructure, decrease in size or close down in the next three months.
*** The euro is trading this morning at $1.45 cents and at 87.5 pence sterling.
