Eircom examiner rejects revised cash offer for group

Eircom’s examiner last night rejected a revised cash offer from 3 Ireland and its Hong Kong-parent group Hutchison Whampoa.

The new bid included a €50 million cash offer to floating rate note holders, an impaired class of creditor who stand to be wiped out under the consensual deal agreed by the examiner and Eircom’s senior lenders.

The overall cash element of the revised bid from 3 and Hutchison remained at €2 billion, but the multinational removed all conditionality with the exception of it being subject to due diligence.

The revised bid was submitted last Sunday.

The bid was lodged by 3, Ireland’s fourth biggest mobile operator, with Hutchison providing the financial backing.

The examiner, Michael McAteer of Grant Thornton, rejected the original bid, citing that it was subject to significant conditionality. This decision was supported by senior lenders. He is believed to have rejected the revised bid on the grounds that it was subject to due diligence.

3’s takeover of Eircom would be subject to scrutiny by competition authorities in Europe. This could take months to achieve and the outcome would be uncertain.