Goldman Sachs' decision to back Sir Anthony O'Reilly's cash and shares offer for Eircom helped make his Valentia consortium favourite to win control of the Irish telecoms company.

The Valentia consortium has offered €1.25 cash plus a warrant - a right to buy newly-created Valentia shares at a fixed price in the future - or €1.27 in cash per Eircom share. Goldman Sachs, co-financial adviser to the Valentia bid, has guaranteed a cash payment to Eircom shareholders who decide to cancel the warrant. The warrant cancellation payment is €0.04 and €0.07 one year after the offer has been declared unconditional.