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Eircom on Thursday quashed rumours regarding a possible approach from Swiss telecoms rival Swisscom.

The Irish fixed-lines telecommunications operator denied in a brief statement to the stock exchange that Swisscom had approached it with a €3bn offer.

“Eircom notes this morning’s press speculation concerning a possible approach from Swisscom. The company confirms that it is not currently in discussions with that company or any other in relation to a possible offer.”

Eircom’s shares, which had risen 13 per cent at the start of trading to €2.30 slipped back to trade 8 per cent ahead at €2.21 by mid-morning.

Eircom is returning to the mobile market with the €420m purchase of Meteor, a Western Wireless unit that has a 10 per cent share of the Irish mobile market. It is raising €423m in a rights issue to fund the purchase.

Swisscom is seeking a big strategic acquisition after failing to buy Telekom Austria and Cesky Telekom over the past year. The group is facing rising competition and falling margins at home.

Copyright The Financial Times Limited 2019. All rights reserved.

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