KEY POINTS:
Investment bank Goldman Sachs JBWere has been appointed to advise on the sale of Telecom's directories business, Yellow Pages.
Goldman could earn around $22 million if the unit fetches the top end price of $2.2 billion some analysts expect.
Goldman beat off Citigroup which was the favourite, having done the sale scoping study in August.
Telecom has said it expected one of the major internet search engine companies to buy the unit.
Internet company Yahoo is seen as the front runner as it is expected to replace Microsoft MSN as Telecom's partner on its internet service, Xtra.
Major international private equity funds such as United States firms Kohlberg Kravis Roberts & Co and the Blackstone Group may join the bidding, along with Australian telco Telstra's Sensis directories business.
The Yellow Pages group consists of the printed Yellow Pages, White Pages, and their on-line equivalents, Local Directories, New Zealand Retirement Guide and New Zealand Tourism Online.
It has about 600 staff and earned $160m in the June year before interest, tax, depreciation and amortisation.
Telecom wants to complete any sale by next June.
- NZPA
