Feeds

Swisscom's Eircom deal lies in tatters

Govt says 'no' to take-over

Boost IT visibility and business value

Swisscom's plans to acquire Irish incumbent Eircom have been ripped to shreds after the Swiss government said it would not allow the telco to make overseas investments for at least the next 12 months.

If the Government sticks by its decision it means that Swisscom's plans to acquire Irish incumbent Eircom now lie in tatters. And any ambitions Swisscom might have had to snap up Danish telco TDC are also heading for the shredder.

A spokesman for Swiss government told Reuters: "We have told Swisscom that the government does not want them to get involved there (with Eircom). The (government's) board representative has been instructed to vote against such an engagement."

The Swiss Government owns 66.1 per cent of the country's leading telco and reckons Swisscom's acquisitive plans are too risky.

In a statement issued this afternoon Switzerland's leading telco said: "Swisscom Ltd acknowledges that the Federal Council has instructed its representative on the Board of Directors to vote against a possible acquisition that Swisscom might make abroad and, instead, to support the distribution of free capital to shareholders.

"The Board of Directors of Swisscom Ltd will review the proposals made by the government representative along with all other corporate, financial and legal issues related to the matter in the course of its regular decision-making process.

"The government representative's instruction does not relieve the Board of Directors nor the executive board from their legal obligation to responsibly perform their duties in the best interests of the company and all shareholders."

In a short statement Eircom said: "Eircom has noted the announcement from Swisscom today. Eircom has no further information and is not in a position to make any further statement at this time." ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Gartner critical capabilities for enterprise endpoint backup
Learn why inSync received the highest overall rating from Druva and is the top choice for the mobile workforce.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.