Jefferson Smurfit could come back to the market within the next year-and-a-half, chief executive, Mr Gary McGann, has acknowledged.

Mr McGann told The Irish Times this week that he would not be surprised to see a new flotation of Jefferson Smurfit within the next 18 months.

Smurfit was taken private in 2002 by US private equity group Madison Dearborn. The €3.7 billion deal meant the Irish Stock Exchange lost not only a stock, but also a sector.

The market expectation at the time of the move was, however, that the firm would at some point in the future take a new listing, thus generating a healthy investment return for Madison Dearborn.

Mr McGann said he accepted that the "general view" would be that private-equity firms plan investments over a five-year period.

By this measure, Smurfit would return to the market by 2006.

"There's no absolute, but the general view would be five years," said Mr McGann. He acknowledged that a new flotation within a year or 18 months would not be surprising.

A flotation in the very near term is not seen as a possibility, however.

"Certainly we're not in a position right now to really do anything until we reduce some of the debt," Mr McGann said.

Smurfit had debt of about €3.4 billion just after the Madison Dearborn deal was completed.

Results issued today are likely to show that this figure has fallen below €3 billion.

"They're patient investors," Mr McGann said of the private-equity firm. "On the other hand, they're very alert and aware of the world and the windows that open up."

One fund manager was less than enthusiastic about the prospect of a new Smurfit listing yesterday.

He suggested that the "cream" of the firm has already been taken out by Madison Dearborn, adding that a new-look Smurfit would be unlikely to generate "double-somersaults" on the ISEQ.

The consolidation that has taken place in the paper and packaging sector over recent years has removed some growth opportunities for the firm, he said.

He added, however, that the ultimate appeal of a new Smurfit stock would depend on price and timing. Dividends would also be seen as a driver.

Mr McGann said this week that the leveraged buyout was the right thing for Smurfit to do.

He said the firm had needed to take action so that the value of its assets could be properly recognised.

"If we couldn't unlock the value then, where would the share price be today?" he asked.