Eircom shares rise on back of Vodafone surge

Eircom shares rose 10 cents to euro 2.50 on the Dublin Stock Exchange today on the back of a surge in Vodafone shares.

Eircom shares rose 10 cents to euro 2.50 on the Dublin Stock Exchange today on the back of a surge in Vodafone shares.

In London, Vodafone shares were up 9.6 percent at £2.08 sterling, valuing the company at about 134.3 billion pounds sterling ($197 billion), ranking it as Britain's biggest listed firm by market capitalisation.

Shares in the British mobile phone giant have rebounded from last week's lows, as investors returned to oversold telecoms stocks, dealers said.

Yesterday the European Commission gave the green light to Vodafone's acquisition of Eircom's mobile operations, Eircell.

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The transaction would allow Vodafone to enter the Irish mobile telephony market where it will face competition from Esat Digifone and Meteor, the commission said.

Additional reporting by Reuters