Eircom ‘will ask shareholders for €350m to fund Meteor takeover’

EIRCOM will ask shareholders to provide €350 million through a rights issue to part-fund the company’s takeover of mobile operator Meteor, according to market analysts.

The fixed-line phone operator, which holds its annual general meeting on Monday, will go to the markets to fund the bulk of the deal instead of adding to its already hefty debt burden of nearly €2 billion.

It has consistently declined to comment on its interest in Meteor but became the last remaining bidder for the company after Smart Telecom withdrew from the race on Thursday. Smart’s exit came just a week after a group headed by businessman Denis O’Brien pulled out. Both groups said the asking price was too high.