Shareholders vote overwhelmingly for Eircom deal

Eircom shareholders have overwhelmingly voted to sanction a buyout deal for the company at an extraordinary general meeting in Portmarnock today.

The proposed takeover by Babcock & Brown and the Eircom employee share ownership trust (Esot) was approved by the Competition Authority this month, paving the way for the transaction worth €2.36 bn.

Over ninety three per cent of shareholders backed the bid made in the name of BCMIH, a newly formed investment vehicle formed by the Australian investment fund and the employee shareholders group.

"The required majorities of shareholders voted today in favour of the scheme," Eircom said after 93.9 percent of shareholders who voted, holding 99.9 percent of the shares represented, backed the bid.

Today's vote was seen as a formality as Babcock & Brown and the Esot already hold more than 50 per cent of Eircom between them.

A  majority of the 14,400 members of the Esot voted earlier this month to accept the takeover of Eircom.

Immediately following completion of the offer, Babcock and Esot will indirectly hold 65 per cent and 35 per cent of the issued ordinary share capital of BCMIH, respectively.

If the offer is successful, Pierre Danon would replace Sir Anthony as chairman. Con Scanlon would remain deputy chairman.

BCM would be Eircom's fifth owner in seven years if the offer goes through. The group was floated on the stock market in 1999 just before the telecoms markets peaked and its share price tumbled rapidly.

The transaction is scheduled to close on August 18th.