Eircom announced this morning that it has entered into a binding agreement to provide information to suitors Babcock & Brown and Eircom ESOP Trustee Ltd.
Eircom said earlier this month that it had received a proposed offer from Australian investment firm Babcock & Brown and Eircom ESOP Trustee that valued it at €2.36 billion.
Although a full bid from the Australians and the trust is increasingly likely, they are not expected to move until their own examination is concluded.
Another company, Swisscom, carried out due diligence on Eircom last November and was ready to table a bid before the Swiss government blocked a deal.
It is understood that any deal would be structured in a way that would enable members of the Employee Share Ownership Trust to avoid large tax bills by receiving guaranteed preference shares in the company after its sale in return for its 21.5 per cent stake.