Eircom shares soar on Swisscom report

Shares in Eircom jumped by nearly 10% on the Dublin stock exchange this morning after a report in the Irish Independent which said Swisscom, Switzerland's largest telephone company, had contacted the company about the possibility of making a €3 billion bid.

One analyst is quoted as saying that a bid for Eircom by Swisscom is a 'reasonable probability'. An Eircom spokesman told RTE this morning that the company did not comment on speculation.

Eircom is currently in the process of issuing new ordinary shares to fund its acquisition of mobile operator, Meteor, for over €400m.

The Irish Independent also reports that two of London's largest stockbroking firms, UBS and Cazenove, have been buying up the rights to those shares from Eircom shareholders.

Eircom shares were up 20 cent to €2.24 in early trading in Dublin.