EIsland increases offer for Eircom to euro 1.24

Mr Denis O’Brien’s eIsland consortium has increased its bid for Eircom to an all-in offer of euro 1.24, it was confirmed this evening.

In a brief statement, eIsland said the bid was the best price available to shareholders and the best deal for the employee share ownership trust (ESOT) and employees with an intention to offer them a 24.9 per cent stake in the future of the company.

EIsland asked the Eircom board to recommend the proposal as a matter of urgency.

On Monday last, eIsland and Sir Tony O'Reilly's Valentia consortium submitted bids to the Eircom board, both thought to be at a level of euro 1.20. This were the only two confirmed bids submitted before Eircom’s deadline.

However, there are believed to be two other possible Eircom bidders; Mr Dermot Desmond's International Investment & Underwriting (IIU) and Kohlberg Kravis Roberts, the US specialist buyout house.

The Eircom board are expected to hold meetings with the interested parties over the weekend and are due to hold a full board meeting next Tuesday.