Eircom ESOP payout 2011

as most members of esop are now retired, it would make sense to pay out the remainder of their shares, if we will have no input into the new format of eircom

hi, Where do you guys get your informatiom and sounds good and would make sense to pay and wind up once and for all.

Any new updates?

kath12 wrote: »

as most members of esop are now retired, it would make sense to pay out the remainder of their shares, if we will have no input into the new format of eircom

The ESOP as shareholders are wiped out when the scheme of arrangements are approved by the high court. When the esop joined with STT 98 million euros worth of preference shares were ring fenced in a trust that could not be touched by any creditors and about 27 million euros worth of vodafone shares. When the high court process is complete the ESOP will be obliged to wind up as the preference shares will be converted to cash and as such must be distributed to participants within twelve months in accordance with the deed of trust. What all that adds up to is a distribution of just over one maximum payout if you have a full allocation. The timing and amounts will be up to the trustees but there is no reason why a maximum payment could not be made immediately.

Would the 3 Mobile bid make any difference to EOSP shares good or bad?

Rgds

jd wrote: »

I would have thought there should be another 1k or so - what are the directors of ESOT proposing to do with the rest, pocket it?

No you have to do the maths 98 million euro worth of preference shares about 27 million euro worth of vodafone shares comes to 125 million take it that there are 14000 esop members that equals 8920 if you are on full allocation which everyone is not this the figure gives you just over 12,700 if you have full allocation. The esop must remain a legal entity until the scheme of arrangements is approved by the high court and remain in place to wind down the esot for tax reasons. It is reasonable that staff must be looked after from the point of redundancy statutory or otherwise the time frame is not unreasonable

whitleydonal wrote: »

The ESOP as shareholders are wiped out when the scheme of arrangements are approved by the high court. When the esop joined with STT 98 million euros worth of preference shares were ring fenced in a trust that could not be touched by any creditors and about 27 million euros worth of vodafone shares. When the high court process is complete the ESOP will be obliged to wind up as the preference shares will be converted to cash and as such must be distributed to participants within twelve months in accordance with the deed of trust. What all that adds up to is a distribution of just over one maximum payout if you have a full allocation. The timing and amounts will be up to the trustees but there is no reason why a maximum payment could not be made immediately.

How come it's said that the approx amount due to people with a full allocation is €13,000. The letter I received prior to the last sale of vodafone shares said I had about 22000 shares. If they selling currently for £1.64 each how come its €13,000 that being quoted.

watty wrote: »

Yes, absolutely I agree. But that was a terribly wrong thing to do. As was not putting proper regulation in place, splitting retail and Network/Infrastructure and then selling Network at a later date (or not at all) and making it illegal to have more than 10% shares in both.


No, esot members lost nothing, as they have not invested and only got a handout. The Handout may be worth less, but that is not a loss as it cost the members Zero.

Meanwhile the ESOT staff got paid well too. The Unions should have not taken the deal.

No this statement is not true the workers have paid a fair price for what they have received, contributed 5% of wages to their pension fund, pay freezes increased productivity, allowed contractors to do their work, saw the workforce halved and taken a 10% pay cut. If you look at the ESB they have a pension deficit of about 1.5 billion and they have a virtual ESOT or a kind of internal market, perhaps the pay-out from the esot should be used to reduce the pension deficit

horse7 wrote: »

Afraid you have it wrong again watty,esop members borrowed money to pay for most of their shares. [FONT=verdana, arial, helvetica]A stake of 9.9% was purchased from the State by the eircom ESOP Trustee. The purchase price was an initial cash sum of IR£160 million, with an additional payment of IR£30 million in 14 July 2000.[/FONT]

yes that was a purchase but a necessary 4.5% would only be given when the unions agreed to a transformation programme where workers gave up seeking pay rises agreed to contribute 5% towards their pension and removed demarcation that is not nothing for nothing. the last pay rise in eircom was 2006 and of course an industrial peace clause and no I am not wrong it is all contained what is called the blue book or the memorandum of understanding. It is important to remember eircom is not allowed to compete so its high prices have made the competition fat at the expense of the consumer eircom connects the competition to the network for 1 cent one would imagine that prices would be much lower for instance in the uk where the market is in full competition phone & broadband package costs 13 sterling per month. It has suited everyone to keep eircom down but the fact of the matter is they own the only network in the country and the competition is false as the esb and bord gais its not real. The network should be taken back or given to an independent company to run and lets have some real competition.