Where are you viewing this PDF?
Try either Adobe Acrobat or Adobe Reader. Apple's Preview program or the equivalent iOS PDF viewing capability from Apple are not full and proper PDF implementations.
Try Adobe Reader and if you still have an issue, let us know.
It displays correctly in the other programs. Thanks for your help
Although your primary question is answered, please allow me to make two important remarks:
- Don't use EPS as it does not support transparency, use AI or PDF instead.
- Don't embed your images or graphics, when you place them, link them only. We have here a lot of threads about corrupted files, caused by embedding images.