Eircom wants to ban the eIsland consortium led by Esat founder and former chairman Mr Denis O'Brien from bidding for the company if its present offer fails.

The eIsland consortium says it will not raise its £2.25 billion offer for the group's fixed-line business despite being told that the offer is well below what Eircom's board believes the operation is worth.

Mr Leslie Buckley, who is part of the consortium, said that since eIsland offered €2.25 billion (£1.77 billion), European telecoms stocks have shed 15-20 per cent of their value. "I think this makes it a very rich offer."

He dismissed reports of Dr Tony O'Reilly's interest in Eircom. "There has been absolutely no evidence that such a bid is taking place," he added.