Irish broadband provider Eircom has rejected a proposed takeover bid worth around EUR3.2 billion-EUR3.3 billion (USD3.6 billion-USD3.7 billion) from an unnamed buyer. According to Reuters, Eircom views the offer – which included debt and equity – as an undervaluation, stating: ‘While the bidder was very credible, the board believed that, with the business reaching an inflection point, the indicated price range undervalued the group.’
As noted in TeleGeography’s GlobalComms Database, Dublin-based Eircom filed for examinership (similar to Chapter 11 bankruptcy protection in the US and administration in Great Britain) from creditors in 2012. In June that year it emerged with a new simplified capital structure and a newly created holding company – Eircom Holdings (Ireland) Limited. More recently, in April 2014 the company appointed Goldman Sachs and Morgan Stanley to advise on what would have been its third public offering in 15 years, before subsequently opting not to proceed with a stock market listing; at the time Eircom reported seeing ‘early signs of commercial momentum amid stabilising earnings,’ with its shareholders purportedly hoping to realise a better return on their investment sometime in the future.