Eircom is in advanced talks to buy local mobile phone network operator Meteor from US carrier Western Wireless just over €300 million, it was reported today.
Talks between Eircom and Meteor's parent company are reportedly at a crucial stage with the two sides yet to resolve a significant gap in valuations.
The negotiations had also been made more difficult by Alltel's recent agreement to acquire Western Wireless, the Sunday Business Postsaid.
The paper quoted a source close to Eircom as saying the former state telecoms operator, which wants to return to the mobile telephone market, "can't make it work" as a mobile virtual network operator (MVNO) piggybacking on a rival's network.
Meteor, which launched Ireland's third mobile phone service in 2001, has a network which covers over 90 per cent of the Irish
Neither Eircom nor Meteor were immediately available to comment on the report.
population and said in November last year that it had 251,600 customers.