The telecommunications company, Eircom, has confirmed that it has entered new talks with a consortium led by the former ESAT Chairman, Denis O'Brien. The talks may results in a revised take-over bid. Mr O'Brien's company had its last bid rejected before Christmas. Commentators are speculating that the new offer, which has not been made public, has a greater chance of success.
When his consortium's bid for Eircom, minus its mobile business, was rejected less than two months ago, commentators suggested that Denis O'Brien would walk away from the process. But he did not. Instead, he has been working behind the scenes to put a new offer together which has some prospect of succeeding.
While the details of the latest offer are unknown, it is understood to be in the region of €1.10 per share. This is €0.10 per share more than the last bid, and values Eircom, apart from its mobile division, at just under £2bn. It is understood the offer will be made in cash. But if the board of Eircom reject the offer, its chances of success are almost zero.
