Eircom denies receiving offer from Swisscom

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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.

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