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B&B gets green light for Irish telco

B&B gets green light for Irish telco

(24 May 2006 – Ireland) Australian investment bank Babcock & Brown has been given the green light to buy Irish telco Eircom for 2.4 billion euros (A$4.1 billion). "After careful consideration the independent directors of Eircom intend unanimously to recommend to shareholders to vote in favour of the resolutions," Eircom chairman Anthony O’Reilly said.

Babcock, alongside Irish partner Eircom Employee Share Owndership Trust, will offer 2.20 euros in cash for Eircom shares with a dividend of 0.052 euros.

Once the deal is inked Babcock intends installing the former head of BT’s (the former British Telecom) consumer business as chairman, working alongside current deputy chairman Pierre Danon.

Babcock first snagged a 10.8 percent share of Eircom in October 2005. At the time Babcock said "in contrast to Telstra, Eircom has an increasingly superior market position and an outlook for top line growth".

Babcock likened Eircom’s market position to Telecom New Zealand.
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