Several private equity groups, thought to include Apax Partners, Providence Equity Partners and Texas Pacific Group, are among the final dozen bidders in the €1bn ($1.2bn) auction of stakes in Iceland Telecom.

The Icelandic government has put 99% of the company up for sale but will not sell more than 45% of the company to a single bidder. It means that bidders are submitting offers in consortia comprising at least three firms, according to a source close to the auction.