Australian fund buys 12.5% eircom stake

Australian investment fund Babcock & Brown Capital and its manager have acquired a combined 12.5% stake in eircom, the fund announced today.

The stake acquisition has sparked takeover rumours at eircom, just weeks after it announced its plan to buy Meteor. Last month, eircom got approval to sell 313 million shares to existing shareholders to fund the €420m purchase of Meteor, which is owned by Western Wireless Corp.