Esat Telecom has confirmed that it plans to raise money through a share issue to part-fund the £115 million (€146 million) acquisition of PostGEM and Ireland-On Line. Esat has not yet said how much it plans to raise in the share issue but, given the group's current high level of debt, market sources said there would be little point in going to the market for funds unless the telecoms group raised a sizeable amount.

Esat yesterday filed a registration statement with the SEC in New York for the planned issue of ordinary shares and notes. The prospect of a substantial share issue had no dampening effect on Esat shares, which traded upwards on Nasdaq from the opening bell on the overnight $40 (€38).