Market Report: Eircom was the talk of the town yesterday after the group released a statement to the stock exchange saying it had received an approach that may lead to it being taken over.

More than 110 million shares, equal to about 11 per cent of the telecom group's total stock, changed hands, helping to lift the Irish market 40.32 points to 6,686.50.

The majority of the stock - about 80 million shares - traded in London, while just over 30 million changed hands in Dublin. In London, traders are able to buy and sell stock anonymously.

The shares jumped by almost 15 per cent, or 31 cent, to end the day at €2.40.

Eircom declined to say who had made the approach. Swisscom, which was last month linked with a possible takeover of Eircom, also declined to comment on speculation that it was the suitor.

Traders said the stock started to move up early in the day, well ahead of the release of the company's statement shortly before 1pm.

One trader said that while the buyer is likely to be another European telecoms operator, it is possible that private equity groups may be interested in making a bid for the group.

Last month, Australian investment fund Babcock & Brown Capital emerged as the purchaser of a 12.5 per cent stake in Eircom. The shares had previously jumped on the back of speculation that Swisscom had bought the stock.

Elsewhere, the market was pretty quiet, with light volumes across most stocks.

Ryanair continued the positive run started at the beginning of the week, ending the day up nine cent at €7.25. The group launched a cut-price promotion highlighting itself as Europe's most punctual major airline. The stock also benefited from further declines in the oil price.

C&C and CRH also extended their gains, ending the day up 15 cent and 30 cent respectively. C&C closed at €5.30, while CRH ended the day at €21.89.Settlement Day: November 7th