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Sir Anthony O'Reilly
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The Eircom board has entered into exclusive talks with Sir Anthony O'Reilly's Valentia consortium regarding a proposed offer for the company after Valentia increased its offer to euro 1.32 a share, it was announced this morning.
The decision by Eircom to enter into exclusive talks with Valentia puts the consortium firmly in the lead to win control of the company.
A Dublin stockbroker said this morning that Mr Denis O'Brien's eIsland was unlikely to come back with an offer high enough to trump Valentia.
Valentia has been granted a period of exclusivity until June 25th in which to finalise the terms of the offer, which the independent directors of Eircom intend unanimously to recommend, an Eircom statement said today.
Under the proposed offer, shareholders would be offered a cash offer of euro 1.27 per eircom share or a participating offer which guarantees euro 1.32 per Eircom share.
This wouldstructured as a cash payment of euro 1.25 per share and a warrant over Valentia's ordinary share capital.
Comsource - the holding group for Telia and KPN's 35 per cent holding - has accepted the offer.
Eircom shares are trading in a range between euro 1.28 and euro 1.29 on the Irish Stock Exchange in Dublin this morning with over two million Eircom shares traded.