Swisscom confirmed today it was in talks with Ireland's Eircom, but said that a takeover offer was not a certainty.
"Swisscom confirms that it has entered into discussions with Eircom in relation to a possible transaction," the Swiss telecoms operator said in a statement on its Web site. "However, there can be no certainty that an offer will in fact be made." "A further announcement will be made when appropriate."
Cash-rich Swisscom has repeatedly said it has been looking for acquisitions abroad but was thwarted in recent attempts to buy both Telekom Austria and Czech-based Cesky Telecom earlier this year.
Sources said Eircom had agreed to allow Swisscom to look into its books after an indicative offer price was settled, valuing Eircom at more than €2.6 billion. The due diligence period is set to last two to four weeks, the sources said.
The former Swiss state monopoly is under pressure to find sources of income outside its home market, where it faces tough competition from upstarts such as Cablecom and TDC-controlled Sunrise.
Switzerland's largest telecoms company has also been mentioned as a possible bidder in the $11 billion-plus battle for Denmark's TDC. Swisscom reports nine-month figures on Thursday and market watchers hope it will also reveal some information about its acquisition intentions.