Eircom shares rise amid takeover speculation

Shares prices in telecoms group eircom rose sharply today as the company revealed it had received a preliminary approach, which could lead to a takeover.

Eircom plc issued a statement to the Irish and London Stock Exchanges this afternoon at 1pm.

“The board of eircom notes the recent share price movement and confirms that the company has received a preliminary approach from a potential offeror that may or may not lead to an offer being made for the company,” it said.

“A further announcement may be made in due course as and when the need arises.”

The company did not reveal who was behind the approach but shares in the firm had already risen this week in line with other telecoms stocks after Telefonica agreed to take over mobile group, O2.

Eircom said last month that it was not in talks with Swisscom after media reports suggested the Swiss group had made overtures about a €3bn bid.

Its share price was up 20c to €2.29 at lunchtime in Dublin after starting the day at €2.09.