Australian Investment Company Acquires Eircom

12:35 am on May 24, 2006 | Category: Business, Telecom Services, Telephone

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Ireland’s leading telecom provider, Eircom, has accepted a €2.6 billion takeover bid from Australia-based investment group, Babcock and Brown.

Existing Eircom investors will be paid €2.252 per share, in the form of cash and an interim dividend. This represents a 35% premium over the company’s share price of €1.67 before speculation about a takeover began several months ago.

Eircom chairman, Anthony O’Reilly, confirmed that the company’s board of directors had given this issue after “careful consideration,” before unanimously endorsing the deal.

“The… directors believe that the cash offer, which recognises the successful implementation of Eircom’s stated strategy, is fair and reasonable and is in the best interests of Eircom ordinary shareholders,” O’Reilly explained.

Once the deal closes, the Eircom stock will be de-listed from both the London and Dublin stock exchanges.

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    Edited by Jeremy Maddock