Vodafone / Verizon Sale

Grizzly said:
Thanks PMU for that. Very helpful. Incidentally if he got Vodafone shares for the Eircell sale does he still hold any original Eircom shares or what happened to this portion of his original Eircom purchase.
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He holds no Eircom shares. While this is open to correction, it is my understanding that in 2001 Eircom swapped some of its shares (i.e. its shareholders’ shares) for Eircel shares and then swapped these Eircel shares for Vodafone shares. So your son ended up with both Eircom and Vodafone shares. In November 2001 Valentia bought Eircom at EUR 1.335 per Eircom share; your son would have received a cash payment for his remaining Eircom shares at that stage, and your son, and the other original Eircom investors, would thereafter hold no Eircom shares.

Grizzly said:
TFrom memory he got some sort of cash payment along the way?
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He also would have received a cash payment in August 2006 of 0.15 GBP per share from Vodafone following the reorganizing of its capital structure.
 
Thanks PMU that information is really helpful. One last question if I may. Under the proposed new Verizon deal I understand there will be a cash payment, some Vodafone shares and some Verizon shares. At this stage my son wants rid of the lot. If I go in to the market place next week I can sell his Vodafone shares on the open market for circa £2.30 and forget about the Verizon deal. However he will have dealing charges. Do you know if there will be a facility to offload the lot for free when the proposed merger/takeover takes place?
 
My mother has passed over the Vodafone/Verizon documentation for me to interpret (blind leading the blind a bit!).
She and my dad (both OAP's) have a small number of shares in Vodafone. It seems to make sense to me that they maintain those shares but agree to sell the Verizon ones. I'm looking through the forms to be filled in and have a few questions:

On the General Meeting Form of Proxy they are asked to authorise the company to purchase its own shares? If they vote for this what does it mean?

On the Return of Value form there is an option to receive a capital payment rather than an income payment. Their default option is an income option. What would changing this to a capital payment mean? Any implications for them as OAPs?

Thank you in advance to whoever might have the time to reply. Happy New Year.
 
Seems like the best thing to do is cash out completely at this stage. For most small Irish shareholders there seems little point holding onto the verizon shares, and I would apply the same logic to the consolidated vodafone shares. Too much hassle to hold such a small amount of shares.
 
Am I correct in thinking that if you have no other Capital Gains in 2014 it would be best to select the capital payment even if you hold a large number of shares?
 
Hen said:
Am I correct in thinking that if you have no other Capital Gains in 2014 it would be best to select the capital payment even if you hold a large number of shares?
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I was thinking that too. It says on revenue.ie that "The first €1,270 of an individual's annual gains is exempt. The balance is chargeable at 30%."


So, if you have only a small number of shares or are in the top income tax bracket surely you are better off taking the capital income option??
 
What is the difference between a capital payment and an income payment? I'm still trying to work that out.
 
What happens if you don't return any of the forms. Struggling to understand the documentation. Thanks
 
+1. Only got the remainder of shares from the Eircom debacle, don't understand the documentation from Vodafone re the options. So, if I don't respond by the date indicated, am I penalised in any way?
 
Vodafone/Verizon

I have 1,550 shares in Vodafone which represent shares I got from my original investment in Eircom at the time of the initial Public Flotation, together with additional shares acquired under Vodafone's Dividend Reinvestment Plan. My understanding is that I have an option to treat the current distribution as an income or a capital distribution. I pay income tax at the high rate (41%)
Accordingly am I correct to opt to take the payment as capital, my understanding is I should have no Capital Gains Tax to pay as the total value of the remaining shares and any monies now received will still be less than the original investment.
But if I take the payment as income, I could be liable to income tax and USC on the monies received. does this sound like a correct assessment of the situation? The documentation from Vodafone doesn't deal with the taxation implications of the proposed payment. Any guidance would be appreciated.
 
For most if not all of those who have small holdings going back to the flotation it has to be better to take the distribution as capital. €1270 per individual CGT exemption (by two for a couple) closes the matter even were CGT rate not lower than the marginal income tax for most people.

Even for those with no income tax liability if the CGT liability is within their exemption they still pay nothing. The situation could be different for people with other capital gains in the year but most of these are likely to be carrying other losses forward so will still be quids in under CGT treatment.
 
Incidentally for those who purchased the max amount of shares allowable on the flotation of Eircom and with the bits sold off and payments received over the years and if we were to sell our remaining shares today in the open market would we be making a loss or would we be making a gain on our original investment?
 
and if taking shares in lieu of dividends (at diff share prices and diff exchange rates ove the entire period) ... a nice little complex spreadsheet in required
 
You have a loss.
From what I can see, and leaving dividends aside, for every 1,000 IEP of Eircom shares you bought on flotation, you would have been allocated 325 shares at a flotation price of 3.07 IEP per share. If you held the shares you were then allocated an additional 13 bonus shares. So you now had 338 shares for your initial investment of 1,000 IEP, i.e. for 1,270 EUR.
Following the sale of Eircell in 2001 you would have received 160 Vodafone shares and in Nov 2001 your Eircom shares were bought by Valentia for 1.335 EUR a share, so you would have received 451.23 EUR.
Vodafone reorganized its capital structure on 11 August 2006 and you would have received a return of capital of 36.27 EUR (i.e. 0.15 GBP per share at an exchange rate of EUR1:GBP 0.682361) and a new share certificate for 144 Vodafone shares.
If you sold these shares on 31 December last at the closing price of 2.37 GBP per share (and an exchange rate of 0.83370) you would have received about 409 EUR. In reality it would be less than this as you would have dealing costs and tax to pay.

So this should give you an idea of the loss you have for every 1,000 IEP invested.
[The above is to give some idea from my records of the transactions that took place following the floatation of Eircom. It is provided for informational purposes only. If other posters have better information please correct it. Note - This is not advice on the tax treatment of the Vodafone shares for CGT purposes. Revenue issued a tax briefing (no 46) on this, which should be followed for tax purposes and not the above.]
 
I do'nt want to hijack this thread, but I sold all my shares in Vodafone in late 1999(including shares in my wife's name and children's names). They continued to send me dividend shares and despite numerous e mails asking them to stop and explaining the situation they continue to send me correspondence and dividends. This is now going to a previous address as I have moved on.
The shares in Vodafone arose from Eircom,Eircell etc.

Their latest response is :

"Thank you for your recent communication, which was received on 30 December 2013.

As you are not the registered holder of the shares held under the Shareholder Reference Number provided in your letter dated 23 December 2013, we are unable to disclose any information to you.

Data Protection
Our policy of customer confidentiality is in accordance with the Data Protection Act 1998. This means that we are unable to disclose any information or act upon an instruction relating to a holding, without the written consent of the holder or, their legally appointed representative.

Regards



Internet Response Team "

How should I get them to stop sending dividends and correspondence without going to the expense of legal representative ?
 
Verizon shares

Hi,

My husband and I each have 137 vodafone shares ( Eircom days) and are tending towards accepting the 4 verizon shares which will be allocated to each of us. Could someone tell us the pros and cons for keeping the verizon shares.
We do not have a share portfolio however like monitoring the share activity.

Thanks
 
I would take the free deal to off load and avoid the costs later over 8 shares
 
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Hi,

Thanks in advance. This thread has really simplified things for a novice (as you can probably guess from the following question!)

How is the capital gains tax calculated? Is it based on the amount invested initially (in my case when I bought Eircom shares)? Then is the exemption the allowable amount of capital gain made in 2014?

Triona
 
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