Experts query ICL flotation deadline

Fujitsu completes full takeover with 9.9 per cent stake purchase.

Industry analysts have cast fresh doubts on ICL's claim that it is still on course for a flotation on the London Stock Exchange in the year 2000.

Keith Todd, ICL's chief executive, restated this intention last week as Fujitsu - the company's Japanese parent - took full control of the UK subsidiary when it purchased the remaining 9.9 per cent stake from Canada's Nortel Networks.

Fujitsu paid about #44 million for Nortel's shares. It has been estimated that ICL would be worth between #1.5 billion and #2 billion when the company is floated.

If the estimate is accurate, Nortel, which has just issued a profit warning, sold the stock at a huge discount.

'This simplification of our ownership structure is an important step towards meeting our objective of flotation in 2000,' said Todd.

But Clive Longbottom, analyst at CSL, said: 'The market is down from 6,100 points to about 4,800 - that's more than 20 per cent. Technology stocks have to start moving back up again before ICL can even think about floating.'

Richard Holway, analyst at Holway Research, agreed: 'ICL has so much to do to get it into an IPO-ready state and so little time. The peak for IT services IPOs was passed earl-ier in the year and the outlook for the market looks increasingly bleak in the 18 months that ICL has left to get itself into tiptop condition.'

He added: 'In all our many presentations recently we have not found one person (other than, perhaps, Keith Todd) who is prepared to place money on the float happening in 2000 - or indeed at all. The odds are shortest on a trade sale.'

ICL/Fujitsu refused to comment on the opinions of analysts.