Eircom's plans to buy mobile phone operator Meteor for approximately €420 million is likely to be preceded by a rights issue to raise roughly €350 million next week.
The former State-owned company is now the only suitor for Meteor after the only other interested party, Smart Telecom, withdrew from the race yesterday, according to today's
Irish Times
.
US operator Western Wireless, which owns Meteor, is disposing of the Irish business as part of a sell-off of all non-American mobile operators. Bids were invited four weeks ago.
In a statement yesterday Smart said that its board and its partner, Virgin Mobile, had decided that the purchase was no longer in the best interests of either company.
Eircom is hoping to confirm the deal and the rights issue at next Monday's agm. Eircom shares closed at at €1.83 last night, down two cent on the day.