Signs point to an early float of computer firm

THREE public relations firms are vying to advise on the stock market flotation of ICL, fuelling speculation that the computer company may choose to come to the market earlier than had been expected.

Fujitsu, which paid pounds 740m for 80 per cent of ICL in 1990, said then that it would float the company within two to five years, but ICL said recently that it would be towards the end of that period.

Dewe Rogerson, Brunswick and Financial Dynamics are the front-runners to advise on the flotation.

ICL has already appointed Schroder as its merchant banker, while SG Warburg and Cazenove will act as financial advisers.

ICL also says that it will not float until it can be sure that the shares can sustain a price of at least 225p, which would value the company at around pounds 1.2bn.

The company has attracted a great deal of interest as - unusually for a European computer firm - it has remained profitable during the current industry slump.

ICL is expected to announce profits for 1992 in April, but they will be down on last year's pre-tax figure of pounds 62m - itself a sharp fall from the pounds 110m reported for 1990. Nevertheless, this is regarded as an achievement in the light of losses suffered recently by almost all its European rivals.

At least 25 per cent of ICL will be offered to the public. A large proportion of the shares is expected to come from ICL's other parent, Northern Telecom of Canada. NT is likely to reduce its stake from 20 per cent to no more than 5 per cent.

The stock market debut will give Nokia of Finland a 5 per cent share in ICL through realisation of convertible preference shares. The shares were part of pounds 230m paid by ICL to the Finnish group, when it bought Nokia Data in October 1991. About 3 per cent of the company will be held by its management through options.

Since the controversial takeover by Fujitsu, it has been a struggle for ICL to maintain its image as a European company but it is believed to have kept an arms-length relationship with its Japanese parent.

The two companies have cooperated for years on mainframe computers. Last year, they formed three joint ventures, two of which - Fujitsu ICL Systems in North America and Fujitsu Systems Business Europe - are ICL-controlled.