Eircom Deal Could See New Ownership

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Eircom’s current owners have agreed to the terms of a potential takeover set down by Singapore Technologies Telemedia, it is currently advising its shareholders to agree to the deal.

eircom-logo

It’s been fairly widely reported that Eircom has been all-but-sold to Singapore Technologies Telemedia Communications, pending the agreement of its shareholders to the takeover arrangement in December of this year. It’s no secret that Eircom has been doing poorly recently, with The Irish Times reporting that it had managed to incur “an operating loss of €486 million in the year to June.”

It’s interesting to see that the deal will be finalised in December, if only because it means we can use the nice round figure of five changes of ownership for Eircom in the ten years since it became a publically traded company, which seems just a little excessive.

If nothing else it’ll be interesting to see if there’s any big change to the way Eircom does business with the change of ownership. Given the apparently relatively high level of customer dissatisfaction (or at least the very vocal internet-based minority of dissatisfied customters) it’ll be interesting to see if STTC can go some way towards cleaning up Eircom’s reputation. Moreover, it’d be lovely to see if we could get some movement on what seems to be the ongoing but now blessedly sporadic issues with Eircom’s DNS servers…

Of course, the perfectly groomed PR message coming out of Eircom is that this is a “very positive development” which brings “important clarity to the speculation surrounding Eircom, which, as is the way with a lot of statements surrounding deals like this, manages to say very little.

You can read all the grisly details of the Eircom deal over at The Irish Times, if you’re interested in the numbers behind the takeover then it’s a solid read.

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