Eircom board backs O'Reilly offer

Eircom's board of directors have given their backing to Anthony O'Reilly's bid to take over the company.

Last night, Mr O'Reilly's Valentia consortium offered €1.365 per share for the company, half a cent higher than the nearest bid from the Denis O'Brien-led e-Island consortium.

Valentia now has 28 days to mail its formal offer to all Eircom shareholders.

However, the future of the company could hinge on whether the Dutch and Swedish telecommunications firms KPN and Telia, who own 35% of the company, favour the Valentia offer or the e-Island offer.