eircom looking to shareholders for Meteor bid funds

Irish fixed line incumbent eircom is looking to its shareholders to raise up to EUR250 million to help fund its planned acquisition of Meteor Mobile, according to The Sunday Times. Meteor, the smallest of the country’s three cellcos, is valued at between EUR380 million and EUR450 million. eircom intends to find the rest of the money from its own cash resources or through additional bank debt, after ruling out pairing up with an equity partner for a bid. The sale of Meteor is expected to be tied up before the end of the month, with eircom likely to face competition from a consortium led by Denis O’Brien and wireline rival Smart Telecom.