The consortium headed by millionaire businessman Mr Denis O'Brien will this week supply further details of its bid offer for Eircom's fixed-line business as part of its push to open direct negotiations.
The consortium, e-Island, was informed by the Eircom board last week that the offer it has made was "considerably less" than the value the board would put on the asset being sought.
Industry sources say the €2.25 billion (£1.77 billion) bid from the consortium might have to be nearer to €3 billion before the Eircom board would consider it.
The board wrote to the consortium on Thursday asking which assets exactly the offer is concerned with, what funding arrangements are in place, and what the nature of the transaction would be.
The board also advised the consortium that further contact should be with the company's advisers, Merill Lynch, and that, based on the assumption the consortium was seeking to buy Eircom's fixed-line business, the €2.25 billion offered would be "considerably less" than the board's valuation of the asset.
Eircom was told on Friday night the consortium wants to get into negotiations with it as soon as possible and this week the board is likely to receive some of the clarification it is seeking.
Eircom, it is understood, will not be rushed into negotiations and its focus remains the deal it is finalising with UK company Vodafone for the sale of Eircom's mobile phone arm, Eircell. That deal, involving a price of €5.1 billion, could be finalised in the next week to 10 days.
It feels the price agreed with Vodafone is very good and would want to see a similarly good price in place if it is to sell its fixed-line business.
Eircom is also understood to be of the view that another bidder for its fixed-line business may emerge.
The consortium, for its part, may not be willing to raise its offer until the two sides enter negotiations and it receives more information on Eircom's business than that which is currently available to the public. Its view is that there is no reason for any delay and that the two sides should begin negotiations immediately.
Mr O'Brien, who made €381 million from the British Telecom takeover of Esat earlier this year, has defended the size of his consortium's offer on the basis that companies such as British Telecom and France Telecom were trading on lower earnings multiples than his group's bid for Eircom's fixed-line business.
British Telecom will announce plans for the breakup of the company within the next two weeks, the Sunday Times reported yesterday.
The company has already put on record that it wants to separate its domestic wholesale business - which effectively rents out telephone wires to other operators - from the rest of the company.
It also wants to float a minority stake in its mobile business, which includes BT Cellnet, from which it hopes to realise up to £9 billion (€15 billion).
