Babcock & Brown bid for Eircom approved

Australian group Babcock & Brown has been given the go-ahead by the Irish Competition Authority to proceed with its €2.36 billion bid for Eircom.

Eircom will be acquired by a company called BCM Ireland Holdings comprising Babcock & Brown Capital Limited (BCM) and the Eircom Employee Share Ownership Trust (Esot), which jointly made the offer for the former State-owned telecommunications company.

Babcock & Brown will own 65 per cent of BCM Ireland Holdings (BCMIH), while the Esot will hold a 35 per cent stake, increasing its interest in Eircom from the current 21.6 per cent level.

BCMIH announced this afternoon that the Irish Competition Authority has granted its approval to the buyout.

The buyout is subject to a number of conditions, including approval of Eircom ordinary shareholders at two meetings scheduled for July 26th.