Eircom takeover speculation fanned

EIRCOM’S share price fell 12 cent yesterday to €2.09 despite persistent speculation it was a prime takeover target.

Takeover speculation was fanned further yesterday when recently-floated Australian investment fund Babcock & Brown Capital acquired a 12.5% stake in the Irish telecom group for €250 million.

It said: “We see this as a strategic shareholding in a company with robust fundamentals and a positive outlook which is not fully recognised by the market at the present time.”