Shares in Eircom were lower in afternoon trading as Vodafone's stock price fell below the crucial 2.20 sterling level from which the Irish operator can withdraw from the deal to sell Eircell its mobile phones business, dealers said.
When the eircell deal was unveiled in December eircell was valued at around euro 1.84 a share. At 2.20 sterling for each Vodafone share eircell issues are valued at euro 1.57 each.
In response to the recent weakness of Vodafone's share price, Commerzbank Securities said it has cut its price target on Eircom to euro 2.70 from euro 3.10. The broker reiterated its 'hold' rating on the stock.
Commerzbank said it does not believe that a re-negotiation of the eircell sale likely in the short term - at least until eircom's egm in March.
At 4.20 p.m., Eircom shares were 5.58 per cent lower at euro 2.37.
Additional reporting AFP
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