Treasury concludes: Sell Telecom as single business

After eight months of research, consultation and reports, Senator Le Sueur today unveiled proposals to go before the States in April. They recommend selling to either another telecom company or a group of investors, with the money put in the Island’s so-called rainy day fund. He would not be drawn on a likely price for the business. However, John Davey of stockbrokers Collins Stewart said Jersey Telecom would not reach anywhere near projections of £200 million. His firm may well lead a bid from local investors that is likely to propose that the company be floated on the Channel Islands Stock Exchange. Other analysts believe the company will sell for well over £100 million. Guernsey Telecom was sold to Cable & Wireless for under £30 million but that was believed by many to be underpriced.