The majority of Eircell's 1,600 employees will be given the option to buy shares in British parent Vodafone in a share option scheme announced yesterday.

Vodafone, which bought Eircom's mobile phone unit, Eircell, in May, offered 42,000 employees in 12 subsidiaries - including Eircell - the option to buy approximately 238 million shares in the group.

"This is a very attractive share option scheme for staff and 1,544 out of a total of 1,600 are eligible in Eircell to take up the offer," a spokeswoman for Eircell said. Employees have to be with the company since May 2nd to be eligible.

The scheme allows employees to buy Vodafone shares worth up half the value of their annual salary. The options can be exercised after three years and up to 10 years after the grant date.

Mr Pat Duggan, analyst with stockbrokers Dolman Butler Briscoe said employees will do well at a price of sterling £1.57, Friday's closing price which was chosen as the strike price. Vodafone shares traded up to £1.64 yesterday. "Our house view is that Vodafone is a buy and has very good growth prospects," Mr Duggan said. "It has a good balance sheet and low debts relative to the sector."

Mr Duggan recommended shareholders stay with Vodafone for the long haul.

Irish investors in Eircom ended up with Vodafone shares as part of a complicated deal when Eircom sold Eircell to Vodafone.