EIsland has been given permission by the Irish Takeover Panel to discuss its #3 billion bid for Eircom with the Employee Share Ownership Trust (ESOT), which owns 14.9 per cent of the company.

The ESOT has refused to back eIsland's bid and continues to support a lower offer from the rival Valentia consortium headed by Sir Anthony O'Reilly. The ESOT has claimed that the Valentia's bid is more attractive because it will become part of the Valentia consortium.

EIsland said yesterday that it now wanted to explore the possibility of making the ESOT part of its bid.

However, a source close to the ESOT said: "We will meet them [eIsland] if they wish, but we will not be changing our minds."