Vodafone swallows Eircell

Eircom has concluded the sale of Eircell to Vodafone for $4.12bn in Ireland's biggest-ever corporate deal.

By Ben King, 21 December 2000 17:54

NEWS Vodafone will give Eircell shareholders 0.95 newly issued Vodafone shares for every two Eircell shares, and assume E250m (£155m) of Eircell debt. Eircell is Ireland's most significant mobile operator, with around 60 per cent of the market. There is only one competitor, Esat Digifone, but a third licence has been awarded to US-Irish consortium Meteor, which is expected to start offering services soon. Ireland is the third-fastest growing mobile phone market in Western Europe, and more than half the population owns a mobile phone. The deal follows Vodafone's Y249.2bn (£1.5bn) cash purchase of 15 per cent of Japan Telecom shares, finalised yesterday. Earlier in the day, Eircom unions were threatening strike action, fearing the deal would threaten Eircell employees' rights to share options, according to reports.

Post your comment

In order to post a comment you need to be registered and logged in.

Log in or create your silicon.com account below

Will not be displayed with your comment

By signing up for this service, you indicate that you agree to our Terms and Conditions and have read and understood our Privacy Policy.

Questions about membership? Find the answers in the Membership FAQ