The €3 billion offer for Eircom from Valentia Telecommunications is expected to be extended for up to three weeks after the group failed to get acceptances of more than 80 per cent at yesterday's first closing date. A spokesman for Valentia would not comment on the level of acceptances at yesterday's first closing, but it is thought that the takeover consortium has acceptances over about 70 per cent of Eircom shares.

It is understood that acceptances were slow to come but that upwards of 40,000 acceptances a day have been received in the past week or so. It is understood that about 200,000 acceptances were received as of yesterday's first closing. Valentia owned just over 45 per cent of Eircom, so it seems that it has received additional acceptances in respect of 25 per cent of the shares.

One obstacle in getting the 80 per cent acceptances required to make the bid unconditional is the fact that exempt market-makers in Eircom, who own about 10 per cent of the shares, cannot formally accept the offer until it is declared unconditional. Another difficulty facing Valentia is lost or mislaid share certificates, as Eircom shareholders must return their share certificates together with their acceptance form as well as the sheer number of individual shareholders - around 450,000.

Because the Valentia offer cannot be declared unconditional, Eircom shareholders will not receive any payment from Valentia until that 80 per cent hurdle has been reached.