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STT raises bid for Eircom parent

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  • 06-08-2009 2:39pm
    #1
    bealtine
    Registered Users Posts: 4,051 ✭✭✭


    http://www.rte.ie/business/2009/0806/eircom.html

    STT raises bid for Eircom parent
    Thursday, 6 August 2009 12:42

    Singapore Technologies Telemedia today made a revised bid worth a total of A$230m (€134.5m) for Eircom Holdings, the Australian based majority shareholder of telecoms group Eircom.

    It was reported in April that Telemedia, a unit of state investor Temasek Holdings, originally offered around A$170m (€99.5m) for the company which holds a 57% stake in Eircom and owns the Israeli Golden Pages.

    STT has now upped its bid to A$0.40 for each share held and said it will distribute all of ERC's available surplus cash via a capital return, assuming that the surplus cash amounts to A$0.97, Eircom's parent company said.
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    The Asian telecoms group, which has stakes in a number of telecoms companies, including Global and Starhub, has already won the support of Eircom employees whose ESOT group owns 35% of the company.

    The former state telecom provider, which has more than €3 billion in debt, and its employees opposed a A$176 million approach earlier this year from TaemasBridge, a group led by executives who oversaw Eircom's takeover in 2006.


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    #2
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    STT are paying €130m in order to have a crack at doing what they did to Global Crossings bondholders back in the day . I strongly suspect that the bondholders will not be too happy in a few months time :)


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    #3
    watty
    Registered Users Posts: 32,417 ✭✭✭✭watty


    Why are they doing this with eircom between their over €4B debt, poor infrastructure and crushed between UPC and the Mobile operators?

    Is it purely the value of Meteor?


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    #4
    Sponge Bob
    Banned (with Prison Access) Posts: 25,234 ✭✭✭✭Sponge Bob


    STT have previous for telling bondholders where to go, the plan is that it will not be €4bn..... shall we say :p


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    #5
    bealtine
    Registered Users Posts: 4,051 ✭✭✭bealtine


    bealtine wrote: »
    STT raises bid for Eircom parent
    Thursday, 6 August 2009 12:42

    Revised takeover bid for Eircom rejected
    http://www.irishexaminer.com/business/revised-takeover-bid-for-eircom-rejected-98201.html

    Revised takeover bid for Eircom rejected

    By Geoff Percival

    Friday, August 07, 2009

    A REVISED takeover bid for Eircom by Singapore Technologies Telemedia (STT) has been turned down, but the Irish telecom’s current Australian-based owners remain hopeful that a deal can be reached with the far eastern-based company.

    Eircom Holdings (ERC) – whose two assets are a 57% share of Eircom and the Israeli Golden Pages directory services provider – said, via a statement to the Australian Stock Exchange, that the latest STT proposal (which concerned a Aus$230m/€134.6 million bid for ERC) included "certain detailed terms and conditions that – in their current form – the ERC board is not able to recommend".

    However, tellingly, the statement added: "Accordingly, ERC will continue to negotiate with STT to seek to improve the proposal and the terms and conditions to which it is subject, with a view to reaching an outcome that will enable the ERC board to announce a recommended proposal."

    Eircom’s owners then said that they could give no assurance that a recommended proposal will result from the aforementioned further discussions with its Singapore-based suitor.

    Read more: http://www.irishexaminer.com/business/revised-takeover-bid-for-eircom-rejected-98201.html#ixzz0NTrok83x


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