Eircom board in STT takeover agreement

14 Sep 2009

The board of Eircom Holdings, owner of Ireland’s largest telecoms operator Eircom, has recommended an offer made by STT Communications, a subsidiary of Singapore Technologies Telemedia.

The company said in a statement this morning that the board of Eircom Holdings, formerly Babcock & Brown, has agreed to terms with STT for the acquisition of the company in partnership with the Employee Share Ownership Trust (ESOT) which owns 35pc of the operator.

Paul Donovan, CEO of Eircom, said: “This morning’s announcement is a very positive development and brings important clarity to the ownership speculation that has been hanging over the Group for much of 2009.

“It is my hope that the transaction will be concluded swiftly and we in Eircom will continue in parallel to drive operational programmes that will transform the company at a time when the challenges in Ireland’s communications sector have never been greater, and the imperative in overcoming them more acute,” Donovan said.

The deal will see ownership of Eircom change hands for the fifth time in 10 years.

By John Kennedy

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years