Eircom follows downward trend

Eircom has given up some recent gains following talks with Vodafone about the sale of Eircell, its mobile division.

Shares in the telecoms group fell yesterday along with similar stocks across Europe.

It closed at €2.82 in Dublin, down five cents on the day.

Vodafone shares fell 6 per cent in London.

The resignation of Mr Jan-Ake Kark as president and chief executive officer of Telia, the Swedish phone company which owns 14 per cent of Eircom, was not seen as a factor.

Mr Kark stepped down for health reasons and has been replaced by Ms Marianne Nivert, the company's first vice president, until a new president and chief executive have been hired.

Ms Nivert said yesterday she intended to carry through the plans Mr Kark put in place.

These include the company's undertaking not to dispose of its Eircom stake until next January.

Both Telia and KPN, the Dutch telecoms company which owns 21 per cent of Eircom, have indicated they plan to sell out as soon as possible which has depressed the share price. The Eircom board met in Dublin yesterday to discuss the Vodafone approach.