Eircom board meeting ends without decision

The Eircom board met this evening to consider takeover proposals for the group’s fixed-line business, but no decision was reached…

The Eircom board met this evening to consider takeover proposals for the group’s fixed-line business, but no decision was reached and the meeting broke up around 10 p.m.

The company had set a deadline of 4 p.m. today for all interested parties to submit bids.

Earlier an industry source told reporters, "It's highly unlikely but not impossible the board will make a decision tonight, but there would have to be an extremely clear-cut winner."

"Also let's not rule out the possibility that Eircom could reject all the bids in favour of going it alone," the source added.

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Sir Anthony O’Reilly’s Valentia consortium and Mr Denis O’Brien’s eIsland have already made indicative offers for Eircom.

Yesterday Eircom announced it had received two further approaches from US takeover specialists Kohlberg Kravis Roberts and Blackstone Communications - which may or may not lead to an offer for the entire share capital of the company.

Valentia has the support of the ESOT employee trust, which will get 29.9 per cent of the company under the proposal. Valentia has only offered euro 1.221 per share and has not said if it is offering any warrants or share options.

Eisland has offered euro 1.24 per share and a warrant worth six cents per share that will allow existing shareholders a stake in future profits.

Eircom shares were trading marginally down this evening at euro 1.28, down two cents on the day.

Additional reporting by PA