Raised Offer for Telia's Shares in eircom

The Boards of eircom and Valentia have announced that they have reached an agreement on principal terms of a possible and increased offer at EUR 1.365 per eircom shares in cash for the entire issued share capital of eircom.
Under the proposed revised offer, Valentia will offer a total of EUR 1.365 per eircom shares in cash, payable in full within 14 days of the revised Offer becoming or being declared wholly unconditional. The payment is composed of a cash offer of EUR 1.335 per eircom share and a cash dividend of 0.030 per eircom share. The Independent Directors of Eircom (those not nominated by Telia, KPN or the Employee Share Ownership Trust) have announced their intention to recommend the revised offer when made.
On June 11, 2001, the Boards of eircom and Valentia Telecommunications had announced an agreement on principal terms of a proposed offer for the entire issued share capital of eircom.
On July 16, 2001, the Board of eircom and e-Island Ltd announced a higher offer for the entire issued share capital of eircom at 1.36 per eircom share in cash.
The ESOT, which holds shares representing 14.9 percent of eircom's share capital on behalf of its members, has agreed to recommend that its members vote in favour of the resolution to approve the ESOT's participation in Valentia and acceptance of the offer.
Telia, which indirectly owns 14 percent of eircom through Comsource, has amended its existing irrevocable undertaking to accept the revised offer which represents a value of approximately SEK 3.9 billion to Telia.
Tobias Lennér, Head of Investor Relations, Telia AB, phone +46 8 713 6649
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