Smart Telecom Bows Out Of Race For Meteor Communications

DUBLIN -(Dow Jones)- Fixed-line telecommunications company Smart Telecom PLC (SMR.LN) Thursday said it has withdrawn from the race to buy mobile phone firm Meteor Communications, clearing the way for its bigger rival Eircom Group PLC (EIR.DB)

"Our investment partners and (bid partner) Virgin Mobile have withdrawn from the race," Smart Telecom Chief Executive Oisin Fanning told Dow Jones Newswires.

"The bid we put in was EUR435 million," Fanning added. "There's no question that anything between EUR400 million and EUR435 million was top price."

Meteor - which has no third-generation license but is the third main mobile company in Ireland - is being sold by its U.S. parent Western Wireless Corp. (WWCA).

Smart Telecom hinted at difficulties in the bidding process.

"In the absence of sufficient due diligence material being made available to prospective bidders, a transaction was not in the best interests of our respective companies and shareholders," Smart Telecom said in a statement.

Smart Telecom said it will, in association with Virgin Mobile and its co-investors, "consider other commercial opportunities for profitable development in the Irish market."

A consortium led by Irish telecom entrepreneur Denis O'Brien earlier bowed out of the race due to the high price, a person close to O'Brien said last week.

Meteor has a market share of 10%, behind Vodafone Group PLC (VOD) and 02 Ireland, a unit of 02 PLC (OOM.LN), but is seen as a fast-track entry into the mobile market.

Eircom is now the only remaining bidder for Meteor Communications. Smart Telecom has previously said it is applying for a 3G license.

-By Quentin Fottrell, Dow Jones Newswires; +353-1-6762189; quentin.fottrell@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 21st July 2005