BT buys Irish telco for $2.46bn

NEWS BT has bought telecoms firm, Esat, for $2.46bn. The deal adds an Irish fixed wire network, Internet services and mobile phone infrastructure through Esat Digifone, to the UK giant's portfolio. Esat chairman and chief executive, Denis O'Brien, denied that the major prize for BT is the company's fast growing mobile business. Esat Digifone had 550,000 subscribers by the end of last year, and a 42 per cent GSM market share in Eire as of 30 September. He also declined to comment on speculation that NTL - the cable television company and owner of Ireland's Cablelink - was also courting Esat. The Irish telecoms firm had also been the unwelcome recipient of a hostile bid worth $1.9bn from Telenor at the end of last year. BT already has a presence in Ireland in the form of Ocean, a 50:50 joint venture with the Electricity Supply Board. However, the telco said it isn't aware of any regulatory issues the latest deal may throw up. Esat yesterday reported fourth quarter and year-end results showing fixed line revenues up 28.6 per cent quarter-on-quarter, and revenue of IR£100m for 1999.