Dutch group KPN Telecom, which has a 21 per cent in Eircom, said yesterday its equity and subordinated convertible bond issue had yielded an expected €5.5 billion ($4.71 billion). But KPN had to offer the equity at a heavily discounted price.

The share issue, two times oversubscribed, was priced at €17.00 for institutional investors and €16.30 for the retail market.

The shares, which have slumped as UMTS investments have spiralled, were last at €17 or below in December 1998. Analysts had been expecting KPN to issue at around €18.

KPN said the share issue yielded €4 billion euros and the convertible bonds €1.5 billion.