Swiss Eircom takeover collapses

SWISSCOM’S takeover of Eircom collapsed spectacularly yesterday when the Swiss government pulled the plug by saying it would use its shareholding to block the deal.

Eircom’s share price went into freefall on the news, taking a 16% hammering to €1.94 that wiped €350 million off the value of the company and returned it to its original pre-approach level.

NCB Stockbrokers analyst Tricia McEvoy said: “Our fair value is €1.94 so we would be hoping for stabilisation around those levels. I guess the news out of Zurich is going to be very disappointing for Eircom shareholders and obviously we’ve seen the share retreat.”