PE chair makes bid for Eircom

Sean Melly, chairman of Dublin-based private equity firm Powerscourt Investments, has tabled a bid for telecom provider Eircom.

Melly is said to be in advanced talks with investment bank JPMorgan regarding a package of finance to restructure Eircom’s €3.8bn debt.

The private equity chairman’s bid is higher than the €97m offer made by TaemasBridge, an investment vehicle led by Australian financier and former Babcock Brown executive Rob Topfer in April this year.

Eircom has indicated that its debt is too high and it could default on loans if action is not taken. The telecom provider recently agreed a deal with its trade unions in a bid to save the company €130m a year.