Undervalued: Eircom rejects EUR3.3bn takeover bid

20 May 2015

Irish broadband provider Eircom has rejected a proposed takeover bid worth around EUR3.2 billion-EUR3.3 billion (USD3.6 billion-USD3.7 billion) from an unnamed buyer. According to Reuters, Eircom views the offer – which included debt and equity – as an undervaluation, stating: ‘While the bidder was very credible, the board believed that, with the business reaching an inflection point, the indicated price range undervalued the group.’

As noted in TeleGeography’s GlobalComms Database, Dublin-based Eircom filed for examinership (similar to Chapter 11 bankruptcy protection in the US and administration in Great Britain) from creditors in 2012. In June that year it emerged with a new simplified capital structure and a newly created holding company – Eircom Holdings (Ireland) Limited. More recently, in April 2014 the company appointed Goldman Sachs and Morgan Stanley to advise on what would have been its third public offering in 15 years, before subsequently opting not to proceed with a stock market listing; at the time Eircom reported seeing ‘early signs of commercial momentum amid stabilising earnings,’ with its shareholders purportedly hoping to realise a better return on their investment sometime in the future.

Ireland,eir (formerly Eircom),

Subscribe

Subscribe to CommsUpdate to get the day’s top telecom headlines delivered to your email.

Subscribe to CommsUpdate

Feedback

Have feedback, corrections, or story ideas? Send them to editors@commsupdate.com.

Browse Past Issues

Filter

Filter CommsUpdate by the following categories or use the search.

Search

Visit our help page information on performing advanced searches, including how to restrict the results by country or company.

Advertise

CommsUpdate is an outstanding advertising venue for companies seeking to reach:

  • International carriers
  • Wholesale service providers
  • Equipment and software vendors
  • Telecom investors
  • Regulators

Learn more about advertising on CommsUpdate.

Share