Two new groups have expressed their interest in purchasing Eircom it was confirmed this evening.
Eircom said separate approaches have been received from buyout specialist Kohlberg Kravis Roberts and New York-based investment bank Blackstone Group which may or may not lead to an offer for the company.
The company said discussions with both parties in relation to these approaches are at a preliminary stage and there can be no assurance that these discussions will result in an acceptable, or any, offer for the company.
It added that discussions with other parties are ongoing and the Board will continue to seek to maximise shareholder value for the benefit of all shareholders.
Earlier today, the eIsland consortium led by Mr Denis O’Brien said the deadline on their proposal had expired. EIsland said in a statement their offer has not been withdrawn and said its position remains under consideration.
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Speaking on RTÉ radio, Mr O’Brien said the nine-month process was now at an end adding that the deadline for its offer expired at midnight last night (June 5th). He said his consortium had been waiting eight days for a response to its increased cash offer bid of euro 1.24.
"All along we have been informed that the highest offer wins. Every proposal that we made has been the highest proposal on the table," he said.
"We’ve been told that the highest offer will succeed. That’s why our proposal - [euro] 1.24 - was the highest on the table plus we came in with a 5 per cent warrant."
Mr O’Brien also denied the suggestion a decision by the ESOT employee trust to support Sir Tony O’Reilly’s Valentia bid had placed eIsland at a disadvantage.
Earlier today eIsland raised its bid for the former telecom monopoly.
The group offered existing Eircom shareholders a slice of the company’s future profits through the issue of a warrant, a certificate giving the holder the right to buy securities at a defined price within a specified time period, while keeping its offer of euro 1.24 per share unchanged.
The eIsland group had told the ESOT employee trust it could have 25.1 per cent of the company, giving ESOT voting rights. The consortium had also said it would make 5 per cent available to staff and management in the form of stock options.
On Friday, Sir Anthony O’Reilly’s Valentia consortium offered euro 1.221 per share and agreed to allow ESOT to buy another 15 per cent of Eircom, giving it 29.9 per cent of the company.