ST Telemedia has won over the support of a key shareholder in its bid for Irish telco Eircom..
But in backing the Singapore firm’s offer, the Eircom Share Ownership Trust (ESOT), who owns 35%, has reportedly angered the Australian-based major shareholder Eircom Holdings.
STT is believed to have offered to purchase 57% shareholder Eircom Holdings for a premium of around €40 million ($56 million) above the €120m fund, the Independent reported.
Eircom Holdings believes the endorsement of the ST Telemedia bid has scared off other potential bidders. Equity firms Arcapita and the CVC group have both pulled out of the running since ESOT's announcement.
ST Telemedia, which is owned by Singapore state investment company Temasek, is the major shareholder in StarHub and Global Crossing.
Eircom is struggling with an estimated €4 billion in debt, and is currently cutting over 1,000 staff as part of an attempt to save up to €130 million.
Eircom Holdings is owned by collapsed Australian investment bank Babcock & Brown, which has just posted a A$5.4 billion ($4.3 billion) loss.