By Justin Madubuko, 24 September 2001 12:20
NEWS The battle for control of Eircom, Ireland's incumbent telco, looks to be over, with Sir Tony O'Reilly on the verge of victory in the lengthy saga. O'Reilly and Denis O'Brien of e-Island have been locked in a bidding war for the telco for months. The Valentia consortium, led by O'Reilly, claims that just over 70 per cent of shareholders have now voted in favour of the deal. Eircom offered E1.365 (£0.86) per share, slightly above the rival bid of E1.36 (£0.85) per share from O'Brien's e-Island. Dutch and Swedish telecoms operators KPN and Telia, who hold 21 per cent and 14 per cent respectively of Eircom stock, have both accepted the Valentia bid. According to O'Reilly, Valentia has now received acceptances, including those awaiting validation, from about 200,000 Eircom shareholders. O'Reilly believes Valentia will receive further acceptances, which will take the consortium over the 80 per cent acceptance threshold. According to a Valentia spokesman, by holding 80 per cent of the company, "Valentia can compulsory buy Eircom", or wait to be given the green light. The spokesman said there are 10,000 unaccounted votes, which could tip Valentia over 80 per cent. In addition, there is still a further five per cent share that is being held by institutions, which cannot be sold until it is made unconditional, according to the spokesman. If Valentia receives quick regulatory approval it will be in a position to send cheques to accepting Eircom shareholders soon, according to O'Reilly. Valentia has extended the takeover offer period until this Friday.
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