NOT all shareholders are crying this weekend, following the news that Swisscom has been blocked from taking over Eircom. Staff at the Irish telco, who hold almost 22% of the company, are taking comfort in the fact that €50m worth of Vodafone shares should be distributed to them before Christmas.

The Vodafone shares in the Esop (employee share ownership plan) are a legacy from the British telecoms giant’s takeover of Eircom’s mobile business Eircell in 2001.

The sixth tax-free distribution from the Esop over the past four years means that those with full allocations, nearly 10,000 of its members, will receive €5,000 worth of shares, according to sources. This will bring the value of the total amount distributed to members to almost €440m — equivalent to 121% of the Esop’s initial investment.

The Esop owns about 68m Vodafone shares. The holding is worth about £87m (€127m), based on the stock’s close at £1.28 on Friday. The Vodafone stock has slumped by 12% over the past two weeks, following a profit warning.

The latest Esop distribution comes on top of the €6,350 worth of Eircom shares received earlier this year. Members can only receive €12,700 worth of shares in a given year before triggering tax liabilities.

The majority usually opt to have their shares sold.

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