Eircom has issued a statement to the Irish Stock Exchange this morning confirming a proposal to buy the company has been received from Babcock & Brown Capital of Australia and the Eircom ESOP Trustee Ltd.
The approach was confirmed last Friday -when the markets were closed - and values the company at €2.36 billion. Eircom said in its statement that the joint proposal "may or may not lead to an offer being made for Eircom".
The Australian company plans to buy the company in conjunction with approximately 12,000 of Eircom's current and former employees. The staff will only have to commit their 21.5 per cent stake in Eircom and will not have to put up cash to fund the bid.
Eircom shareholders will be offered €2.20 per share and a dividend of 5.2 cent per share.
A bid at this level is at least 20 cent below the €2.40-plus on offer from another suitor, Swisscom, last year before the proposal was blocked by the Swiss government.