Denis O'Brien has told RTE that his eIsland consortium has increased its bid for Eircom to an all-in consideration of 1.24 euro.
O'Brien said the bid would put eIsland well ahead of the other parties interested in buying the company. eIsland says it intends to offer the employee share ownership trust (ESOT) a 24.9% stake should its bid succeed.
The dramatic move comes on the day O'Brien gave evidence at the Moriarty Tribunal, which conflicted with that of Norwegian telecom company Telenor concerning the payment of $50,000 to Fine Gael.
In a statement this evening eIsland said it was seeking the board's recommendation for the offer as a matter of urgency.
A spokesman for Eircom said the company was considering the offer, but was continuing discussions with a number of other parties.
It is understood talks will continue with all the consortia throughout the weekend.
An Eircom board meeting is scheduled for Tuesday, and it is thought this is the target date for a decision on whether to recommend an offer to shareholders
Last Monday both eIsland and Tony O'Reilly's Valentia consortium submitted bids to the Eircom board, thought to be at a level of 1.20 euros.
It is also understood that the board has maintained contacted with two other Eircom suitors: Dermot Desmond's IIU, and US buy-out specialists Kohlberg Kravis Roberts.
In a statement this evening eIsland said a swift recommendation by the Eircom board would be in the interests of all Eircom shareholders, employees and customers.
The statement also said that eIsland was led by the best management team in the Irish telecoms industry with a clear plan to introduce revenue and business growth to Eircom.
