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Vodafone in Talks With Eircom

TheStreet.com-NYTimes.com Staff

Vodafone Group(VOD Quote) is in negotiations with Eircom(EIR Quote), the Irish telecommunications company, to take a majority stake in or acquire all of its mobile subsidiary, Eircell, The New York Times reported on its Web site Monday, citing people close to the talks.

A bid for all of Eircell would likely be valued at about $4.3 billion, more than 80% of the market value of the entire parent company, the report said. The talks with Vodafone, which began in September, are expected to reach a conclusion within a month, the report added.

A deal would allow Vodafone, the world's biggest mobile phone company, to keep in step with its British rival, British Telecommunications (BTY Quote), which entered the Irish market in January with its $2.5 billion purchase of Esat.

Eircom posted a statement on its Web site earlier Monday acknowledging that it was in talks that "may or may not lead to the disposal of part or all of Eircell." The company said it would comment further when it was "appropriate."

Vodafone finished Monday regular trading up 25 cents at $36, meanwhile Eircom gained $1.25, or 15%, at $9.75.