EIRCOM’S SYDNEY-LISTED parent group suspended trading in its shares yesterday pending an announcement on its sale process.

Eircom Holdings, which also controls the Israeli Golden Pages operator, requested a two-day “trading halt” from the Australian stock exchange “due to market speculation surrounding the sale process”.

Trading in the shares is due to resume tomorrow.

Singapore Technologies Telemedia (STT) is the frontrunner to acquire Eircom after its bid for the group was backed last week by the Irish company’s employee share ownership trust (Esot).

STT has stated only that it is evaluating a bid for Eircom.

Reports suggested that STT’s bid could be tabled this week. A deadline of June 30th for bids is believed to have been set.

Reports have suggested that STT is preparing to offer a €40 million premium to the cash balances of €120 million in the Australian fund.

The Esot owns 35 per cent of Eircom, with the Sydney-based entity holding 57 per cent. Troubled Australian investment group Babcock Brown owns the balance of the company.

Attaining the support of the Esot was crucial for STT, which has substantial mobile interests in Asia, and is believed to have resulted in other bidders cooling their interest in recent days.

The Esot is believed to favour a takeover by an industry player after years under the ownership of private equity groups.

A number of groups have expressed an interest in acquiring Eircom, including private equity companies Permira, CVC and Arcapita, and Irish telecoms executive Seán Melly.

An offer by Taemas Bridge, an investment vehicle set up by former Babcock Brown executive Rob Topfer, who engineered the Australian company’s highly leveraged takeover of Eircom in 2006, was rejected. Mr Topfer’s bid offered 175 million Australian dollars (€100 million) for Eircom.