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'New Eircom' set to invest €1.3bn in firm

TELECOMS group Eircom is convinced it will move to a solid footing in the near future and is planning to invest €1.3bn over the next three years.

The company's chief executive, Paul Donovan (right) , said that a "new Eircom" is about to emerge and he is "very confident" the firm will put this period of financial instability behind it.

Eircom's pension fund is now close to break-even as the company froze contributions and placed caps, Mr Donovan said.

And he noted that shareholders are talking to bondholders about reducing the debt burden and injecting some additional funds into the company.