The joint offer is of �?�2.20 per ordinary share, with a dividend of 5.2c per share and a preference share alternative entitling ordinary shareholders to receive unlisted preference shares.

The offer lies roughly at the midpoint of the range discussed at the commencement of negotiations between the board and the suitors.

The employees stand to gain handsomely from their alliance with Babcock if the Sydney-based investment fund takes Eircom private, as seems likely. The Esot would sell its 21.6% stake to Babcock for the offer price but would then purchase a stake of equivalent size at a lower price.

After a few years, Eircom could again be brought public for an improbable third stock exchange listing in a decade. But 180-degree turns in strategy are not unheard of at Eircom.

It sold its mobile business Eircell to Vodafone in 2001 but returned to the wireless fray last year when it acquired Meteor. At the time Eircom chief executive Philip Nolan said the acquisition would bring growth back to the business to offset falling revenues from traditional landline calls.

On 2 March, Babcock indicated that if its bid succeeded it would consider breaking Eircom into two units.

At �?�2.20 per share and a 5.2c per share dividend, the offer represents 7.1x ebitda, which is broadly in line with other recent European telecom deals.

CeskyTelefonica was sold at 6.8 times ebitda, Portugal Telecom at about 7 times ebitda, once non-related items are stripped out, and TDC Denmark at 7. 2 times.

The offer represents an uplift of 48% for shareholders who bought in at the flotation price of �?�1.55.