Champagne corks were no doubt popping at Telenor's headquarters in Oslo after the sale of its 49 per cent of Esat Digifone to BT for $1.24 billion (€1.32 billion). BT might have felt it had little option but to buy out its Norwegian partner in the Irish mobile phone operation, but the fact remains that BT is paying a huge price by 2001 standards to take full control of all of Esat's assets.

BT is, in effect, paying 2000 EBITDA multiples for the Telenor stake in Digifone, even though the slump in telecom shares - exacerbated this week by France Telecom cutting the IPO range for Orange - would suggest that Digifone should not be valued at anything near those multiples.

Hardly surprising then that BT - with its debt load now $1.24 billion higher since the Digifone deal - has seen its share price tumble in the past week.

There isn't much joy for Eircom shareholders, however, on either front. The €1.10 a share supposedly on offer from e-Island is cheap and opportunistic, while Vodafone shares are currently languishing close to the 220p sterling at which Eircom could walk away from the sale of Eircell. That, however, will not happen.

But Eircom shareholders getting Vodafone shares should have no expectation of any immediate improvement. The sector is currently going through its most dismal periods and there is no sign of any short-term recovery.