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Eircom rejects €3.3bn bid as US investor builds stake

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The ownership of Eircom is back up for grabs after it rejected a “credible” offer of up to €3.3 billion, while its biggest shareholder has also sold a quarter of the group to Anchorage Capital, a US investment house.

Anchorage, which has global operations and is headquartered in New York, did not comment when asked if it was the “credible” bidder referred to by Eircom. Eircom also declined to comment.

Offer too low

Eircom told the stock exchange on Tuesday evening that it rejected the offer as being too low. It is understood that the offer came in the first three months of this year, and the telco said the issue is “not being progressed”.

“[It was] a non-binding expression of interest in roup for an aggregate price in the range of €3.2 billion to €3.3 billion,” said Eircom. “While the bidder was very credible, the board believed that, with the business reaching an inflection point, the indicated price range undervalued the group.”

Irish Times

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