Irish telecoms firm valued at £1.6bn

Irish telecoms firm Eircom has confirmed that it is the target of a takeover by a partnership between Babcock & Brown Capital and its own pension fund group.

The offer proposes a buy-out of Eircom's shares at €2.20 (£1.52), which values the company at £1.63bn.

Under the offer, Eircom shareholders would also be offered a dividend of approximately €0.052 per ordinary share, or a preference share in the bidding company.

Eircom made an official statement following widespread media reports. "The board of Eircom notes the recent press speculation and confirms that it has received a joint proposal from Babcock & Brown Capital Limited and Eircom ESOP Trustee Limited, which may or may not lead to an offer being made for Eircom," said the company.

An Eircom spokeswoman said that the company could not comment on whether it would back the move.