Ireland’s former monopoly fixed line operator eircom has reportedly rejected a takeover proposal from Australian investment firm Babcock & Brown and the Eircom Employee Share Ownership Trust (ESOT). In a statement the company said: ‘The board of eircom notes the recent press speculation and confirms that it has received a joint proposal from Babcock & Brown and ESOT which may or may not lead to an offer being made for eircom.’
Babcock & Brown and the ESOT made the joint bid for Ireland’s dominant telco yesterday. The offer price of EUR2.20 per share, plus the payment by eircom of a EUR0.052 per share final dividend, valued the takeover at around EUR2.36 billion. The two groups together hold 50% of eircom shares and said the offer was subject to due diligence and other pre-conditions.