Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

[Business Post Article] Eircom may seek new partner

Options
  • 15-11-2004 10:24am
    #1
    damien
    Registered Users Posts: 4,290 ✭✭✭


    Eircom may seek new partner
    14/11/04 00:00
    By Gavin Daly

    Eircom could be forced to find a new international partner after BT, the parent company of Eircom rival Esat BT, said it would buy US firm Infonet
    for $965 million. Eircom is a customer of Infonet and uses its network to provide global services to Irish-based multinationals. However, it would effectively find itself a customer of Esat BT when the BT/Infonet deal is completed.

    Sandra O'Boyle, an analyst with Current Analysis, said the deal could lead to "fallout in certain markets once BT takes over. For example, Eircom, the Irish incumbent is an Infonet customer and Esat BT is the leading challenger in Ireland''. A spokeswoman for Esat BT said it was too early to speculate on what affect the deal could have. While 97 per cent of Infonet's shareholders said they would support the transaction, it is still subject to regulatory clearance and is not expected to close until the first half of next year.

    Infonet could not be contacted for comment.

    In her research, O'Boyle said the deal was important to BT "because buying Infonet is part of BT's all-out effort to become a market leader in global IT [information technology] network services''.

    BT has won a number of large outsourcing deals, and Esat BT has a €151 million contract to manage the telecoms requirements of Bank of Ireland. Esat BT last week reported a net loss of €27 million on turnover of €173 million for the half-year to the end of September.

    Eircom will report its half-yearly results on November 24. Its shares were trading at €1.63 on the Dublin stock on Friday, up from their flotation price of €1.55 in March.


Advertisement