Eircom shares hit by Meteor

EIRCOM has had almost €130 million wiped off its market value since announcing it would buy Meteor for €420m earlier this week.

The fall has led some analysts to speculate that the company may have overpaid for the mobile operator.

“The decline in Eircom’s share price since the Meteor acquisition was announced could be taken to mean that the market believes that Meteor is actually worth €293m,” said Neil Clifford of Goodbody Stockbrokers yesterday. Goodbody is advising Eircom on the purchase.