Employees set to reap €300m windfall from sale

EIRCOM’S current and former employees are likely to get windfall payments later this year from the sale of their stake in the company.

The employee share ownership trust (ESOT) will net around €500m from the sale of its 22% stake in Eircom to Babcock & Brown, which yesterday announced details of its €2.20 a share bid for the company. After paying off loans and reinvesting part of the proceeds back into Eircom, around €300m will be left to distribute to the 14,000 ESOT members.

Though no formal plans to distribute the cash have been announced, it is understood a payment could be made later this year when the takeover in finalised. ESOT members could get up to €20,000 each.