Eircom ESOP: when's our next windfall?

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Re: eircom esop when's our next windfall?

hey MB05 - thanks for the info and for all the previous posts.. they have been very helpful..

hopefully the gods are looking down on us - he he..
 
Re: eircom esop when's our next windfall?

Its a worrying development but thank God they only hold a small percentage of eircom. B&B Capital are our main owners and from what I understand they are in a better position than the parent company and completely separate. I think there has been dealings in the backround trying to distance us from B&B.

I wonder will the ESOP and B&B Capital buy the 7-8% they own or will the rumours of another eminent sale be true. Singapore Telecom was the last name I seen mentioned in the papers.

Hold on to your seats its going to be a bumpy ride!
 
Re: eircom esop when's our next windfall?

Babcock & Brown going bust will have no effect on Eircom or Esop.


As previous poster pointed out,BCM(Babcock Capital management) own 57% of Eircom as well as holding in an Israeli company.

They also have $325m Aud in cash of which they are proposing to repay $100m to BCM shareholders including me which will be voted at AGM on 27th Feb.

BCMs' current market value is $200m Aud so they are trading at substanial discount to their $325m cash holding and share market is implying that their Eircom/Israel investment has no implicit value.

This is the reason that I bought BCM in 1st place as even it trades up to its' cash balance will give me 60% upside on price that I bought at.
I also believe there may be some value in Eircom if it can manage to get its' debt levels down.

I can't see them increasing their stake in Eircom unless they get it at a knock down price.
 
Re: eircom esop when's our next windfall?

Q1. Will eircom esop members profit from any of these $100m BCM shares in Feb?

Q2. When the esop unit is disolved in 2012, does that mean all 35% of eircom shares will have sold. i.e money in our pockets?
 
Re: eircom esop when's our next windfall?

The $100m cash will be given back to BCM shareholders if proposal is passed at BCM AGM at end of this month,it has nothing to do with Eircom/Esop at all.
BCM raised $1 billion from shareholders which it used to purchase stakes in Eircom & Isreali company with $350m left over.
Its' simply proposing to return part of this excess cash to BCM shareholders

On second question can't answer that but on latest Esop Newsletter stated Esop had $350m in assets including notional $175m for 35% stake in Eircom(given current economic climate/credit crunch questionable how attainable this is)

I think Eircom releases quarterly results at end of this month so will be interesting to see how its' doing in current climate
 
Re: eircom esop when's our next windfall?

This is very intersting reading. I didn't realize this was the last 'guarenteed' payout. Goodness gracious! BTW does anyone know why the November 2008 payout was withheld and why is there no explanation for this on the ESOT website? Could it happen again this year?
 
Re: eircom esop when's our next windfall?

The Nov payment wasn't withheld. Ring the ESOT. Didn't you mention this previously?
 
Re: eircom esop when's our next windfall?

Do we, ESOT, still have Vodafone shares, for what they are worth?
 
Re: eircom esop when's our next windfall?

the last esop correspondence stated that we had 66 million euro in vodafone shares i think the price has risen since then so obviously the value has risen i suppose they are not going to give out any allocation of vodafone until the esop debt is repaid as the dividends are bing used to pay off the loan due to be finished next year and god only knows what the share price will be then.
 
Re: eircom esop when's our next windfall?


Sterling has probably fallen more that vod.l shares have risen though.
 
Re: eircom esop when's our next windfall?

BurritoQueen said:
BTW does anyone know why the November 2008 payout was withheld and why is there no explanation for this on the ESOT website? Could it happen again this year?
Click to expand...

As per the following link, shares were appropriated on November 17th, 2008:



Drinky
 
Re: eircom esop when's our next windfall?

Just back from BCM results presentation in sydney.

Very interesting and main points as follows

1-AGM authorised $100.7 million AUD cash return to BCM shareholders which we will get in middle of March

2-Accounts assume no market value for Eircom
Eircom goodwill impairment of $1,423 million AUD

3-Eircom pension deficit 450 million euros

4-New CEO appointed for BCM who has specific telecommunications experience with Telstra and will be based in London

5-Hunt continuing for replacement of Reg Comb

There then was a question & answers sections and main points I picked up on

-Board agreed with BCM shareholders that retention of cash within BCM of critical importance so can't see BCM increasing its' stake in Eircom.

-Meeting was a bit of doom & gloom from some shareholders with talk of winding up BCM etc-understandable as some BCM investors have lost a lot of money

-I stated at meeting that Eircom had a future if it could reduce costs & gearing

-Esot in discussion with BCM about range of alternatives for Eircom
 
Re: eircom esop when's our next windfall?


How will this impact Eircom ESOP shareholders like myself (if at all!)? I mean, will it strenghten our chances of a tripple appropriation in 2009 (ie an appropriation in March this year as well as June/July and November/December?).

Thanks in advance,

Drinky
 
Re: eircom esop when's our next windfall?

No impact on Esop as return is to BCM shareholders who own 57% of Eircom.

Esop values 35% stake in Eircom at notional stake of $175m whilst BCM auditors value BCMs' stake at zero as well as Australian sharemarket given current BCM share price.
 
Re: eircom esop when's our next windfall?

Just to clarify couple of things from agm today

1-Pension deficit $433m not $450m as I stated in previous post

2-New BCM CEO is Andrew Day
 
Re: eircom esop when's our next windfall?

i cannot understand where this triple payment can be funded from looking at the last esop bulletin ther does not seem to be enough to make this payment can anybody enlighten me. thanks
 
Re: eircom esop when's our next windfall?

It can't unless the company is sold again (open to correction on this) and the ESOP sells its shareholding.
 
Re: eircom esop when's our next windfall?

I agree with MB05.

From memory,last circular had 350m euro in Esop including notional 175m for 35% stake in Eircom.This notional stake will only be realised if another party buys out Esops' 35% stake in Eircom.

Can somebody out there give breakdown of other 175m per last Esop newsletter-ie how much relates to Vodafone/cash/preference shares
 
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