Eircom rejects takeover offer of up to €3.3bn

Eircom last night said that it has recently turned down a takeover approach. 

The rejected bid valued the so-called ‘enterprise value’ of Eircom — which includes the company’s huge debt load — at up to €3.3bn.

In a brief statement to the Irish Stock Exchange, the company said that it has previously received a non-binding expression of interest for an aggregate price in the range of €3.2bn to €3.3bn. “While the bidder was very credible, the board believed that, with the business reaching an inflection point, the indicated price range undervalued the group. The matter is, therefore, not being progressed,” the company said.