Swisscom confirms eircom interest

10 Nov 2005

Swisscom has confirmed that it is in talks with Irish fixed line incumbent eircom regarding a takeover of the company, but warned that a deal was far from sealed. ‘Swisscom confirms that it has entered into discussions with eircom in relation to a possible transaction. However, there can be no certainty that an offer will in fact be made,’ the Swiss company said in a statement. Last week eircom revealed to the Irish Stock Exchange that it has been approached by Swisscom with a view to a possible takeover bid. eircom currently has an enterprise value of EUR4.4 billion and has long been touted as a takeover target, though Swisscom’s bid is likely to be nearer EUR2.6 billion according to the Financial Times. Unconfirmed reports suggest that the Swiss company could team up with Babcock and Brown Capital, an Australian investment fund which bought a 12.55% stake in the company in September. Swisscom is known to have money to spend, having lost out to Telefónica in the race to buy Cesky Telecom earlier this year.

Ireland, eir, Swisscom