Swiss firm confirms Eircom talks

Swisscom has four million mobile subscribers

Two of Europe's leading telecoms firms, Swisscom and Eircom of Ireland, are in takeover talks.

Swisscom confirmed it had approached its Irish counterpart about a "possible transaction" but cautioned that it wouldn't necessarily make an offer.

Eircom is one of Ireland's largest companies and dominates the market for fixed-line phone services there.

Activity in Europe's telecoms sector is picking up, Telefonica having recently made a £17bn (25bn euros) bid for O2.

Suitor

Eircom revealed earlier this month that it had been approached by an unnamed suitor.

Analysts said they expected any bid would be in the region of 3bn euros (£2bn).

Swisscom is Switzerland's largest telecoms operator, with more than 15,000 staff.

There can be no certainty that an offer will in fact be made Swisscom

In addition to its fixed-line services, Swisscom has more than four million mobile phone subscribers.

"Swisscom considers various investment opportunities on a regular basis," the firm said in a statement.

"However, there can be no certainty that an offer will in fact be made."

Stock market return

Eircom returned to the Irish stock market last year after a two-year absence.

The firm was taken private in 2001 in a deal backed by financier George Soros and media tycoon Tony O'Reilly.

Eircom controls about 80% of Ireland's fixed-line phone market while its internet service has 600,000 subscribers.