EIsland has described this morning’s announcement by Valentia that it has reached agreement with Eircom’s board regarding its offer for the company as "unusual and highly conditional."
Valentia, headed by Sir Anthony O'Reilly and backed by financier Mr George Soros, raised its bid to 1.365 euros a share this morning- valuing the company at more than euro 3 billion- topping an existing euro 1.36 a share bid by eIsland, led by Mr Denis O'Brien.
Valentia also said it had a letter from Eircom's largest shareholder Comsource - owned by Sweden's Telia and Dutch KPN - amending an earlier irrevocable undertaking to sell its 35 per cent stake to Valentia.
The amendment states that Comsource will sell to Valentia at the price of its revised bid unless an offer of more than euro 1.50 a share emerges.
In a statement released this morning, eIsland said the agreement regardingComsource’s holding in Eircom"seems to be designed to prevent shareholders receiving an increased offer of anywhere between euro 1.36 and euro 1.50".
EIsland said the decision deprives shareholders and employees of choice and value. It added that the ESOT Trustees appear to have agreed to recommend the Valentia offer without exploring other options with eIsland.
EIsland called on Comsource not to make any further amendments or extensions to its agreement and ESOT Trustees to enter discussions with eIsland prior to committing to recommend any offer.