eircom board accepts B&B offer

25 Jul 2006

The board of fixed line telco eircom has announced that it has accepted a takeover bid from Australian investment fund Babcock & Brown in an all-cash deal that values the operator at EUR2.4 billion (USD3.1 billion). Babcock & Brown will take on EUR3.8 billion in debt as part of the transaction, but has rejected accusations that this would handicap investment in eircom infrastructure and services. Pierre Danon, the incoming chairman, said in an interview that the new owners would consider splitting up eircom into different units, ‘but for the time being we intend to run the company as an integrated company.’

Ireland, eir