Revised takeover bid for Eircom rejected

A REVISED takeover bid for Eircom by Singapore Technologies Telemedia (STT) has been turned down, but the Irish telecom’s current Australian-based owners remain hopeful that a deal can be reached with the far eastern-based company.

Eircom Holdings (ERC) – whose two assets are a 57% share of Eircom and the Israeli Golden Pages directory services provider – said, via a statement to the Australian Stock Exchange, that the latest STT proposal (which concerned a Aus$230m/€134.6 million bid for ERC) included “certain detailed terms and conditions that – in their current form – the ERC board is not able to recommend”.

However, tellingly, the statement added: “Accordingly, ERC will continue to negotiate with STT to seek to improve the proposal and the terms and conditions to which it is subject, with a view to reaching an outcome that will enable the ERC board to announce a recommended proposal.”