Eircom faces more than 100 lawsuits from former employees who are seeking damages from the firm because they claim to have been exposed to asbestos.

The firm is also being sued by its rival Esat BT and is currently under investigation by the Competition Authority over its dealings with a subsidiary firm, TE Services (Ireland) Limited.

Details of the lawsuits were revealed in the bond offer document published by Eircom yesterday. If successful, the lawsuits could cost millions in damages.

Eircom has settled just four of the 113 cases filed by staff who allege they have experienced clinical disease or mental anguish from exposure to asbestos. Of the claims filed, about 98 relate to incidents which occurred in 1985 at one particular Eircom premises.

As of June 2003, about 38 premises occupied by Eircom contain asbestos. These are identified, controlled and monitored, according to the bond document.

Thousands of similar asbestos claims have been filed against international companies in the past few years. Some of these lawsuits have resulted in multimillion pay-outs to the litigants.

Separately, Eircom also faces a multimillion euro claim for damages from its main rival Esat BT over alleged anti-competitive behaviour. The suit was lodged after a finding by the telecoms regulator in October 2002 that Eircom offered illegal rates to certain customers that were signed up for discount schemes.

Meanwhile, in a further separate investigation the Competition Authority is investigating certain transactions with a subsidiary TE Services (Ireland) Limited. Eircom holds a 35 per cent stake in the company.

An Eircom spokesman would not comment on the asbestos cases.

Eircom is also involved in legal disputes with Commission for Communication Regulation (ComReg) on opening its local access network to competition.