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BT is Esat’s white knight?
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January 10, 2000: 3:34 a.m. ET
Report: $2.1B approach is likely response to hostile Norwegian bid
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LONDON (CNNfn) - British Telecom is set to step in with a 1.3 billion pound ($2.1 billion) white knight offer for Ireland’s Esat Telecom according to a press report. A BT bid would combat an existing approach from state-owned Norwegian firm Telenor.
The Sunday Times newspaper reported that BT has already sought permission for a deal from officials at the European Commission, the Brussels-based executive arm of the European Union.
"Talks are at an advanced stage,” the newspaper quoted a source close to BT as saying, with an agreement expected within 10 days. BT shares rose 4 percent to 1,244 pence in London.
The cash offer will be pitched around $95 per share, the Sunday Times claimed, surpassing Telenor’s recently revised $85 offer.
Esat’s board said it was looking for a white knight after Telenor launched its bid, and has confirmed talks with "third parties”. BT was widely suspected to be interested in boosting its presence in Ireland - it already has a small venture there - although the company previously refused to comment on whether it would bid for Esat.
As well as a fixed line business, Esat is joint owner with Telenor of Esat Digifone, Ireland’s second cellular network provider and the country’s largest Internet service provider.
The newspaper reported that Telenor’s large stake in Digifone has put off other potential bidders such as cable operator NTL, but BT is undeterred because it already has several joint ventures with the Norwegian firm across continental Europe. 
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