Takeover rumours abound as Australian fund takes 12.5% stake in eircom

A consortium led by Australian investment fund Babcock & Brown has acquired a 12.5% stake in Ireland’s dominant fixed line operator eircom, fuelling speculation that the telco is about to be taken over. Last week eircom denied speculation that it was in talks with Swisscom, after local press reported that the Swiss telecom group was looking to stage a EUR3 billion buyout of the company. Portugal Telecom has also been linked with eircom.