Alfie Kane's revelation that shareholders may not get all the proceeds from the sale of Eircell overshadowed a poor but not unexpected set of results.
With the shares closing last night at €2.89, most of the firm's 500,000 small shareholders - who bought at €3.90 - must be disappointed as the deal would be worth the equivalent of €2.30 a share.
All signals from the firm so far have been that shareholders would receive all the proceeds of the €5.1 billion deal.
Assuming the board, chaired by Mr Ray MacSharry, lets Mr Kane keep some of the money, which is far from certain, he will have to spend it wisely if he wants to return shareholder value.
One option suggested yesterday - buying out Comsource - could deliver almost immediate benefits to shareholders. The Dutch-Swedish consortium that owns 35 per cent of the company has made it clear it wants to get out of Eircom as quickly as possible.
The knowledge that KPN's 21 per cent and Telia's 14 per cent of the company are on the market has been a significant drag on the share price. A full or partial exit of Comsource now would prevent this unhappy situation continuing after the Eircell sale.
But if Mr Kane is serious about subsequently selling the fixed line business such a move seems unnecessary as Com source can exit via that deal.
The good news for shareholders is that the sale of the mobile business looks more likely than it did last week when British based investors started selling over fears that the deal was unravelling. That selling pushed the shares to €2.58 down from €3.17.
Mr Kane appears upbeat about the chances of a successful outcome. Yesterday, he identified the main obstacle - Vodafone's concerns about the regulatory framework - and indicated the issues would be resolved shortly.
The British mobile giant appears to be concerned that it will end up being the largest player in the Irish mobile market, but against a regulatory backdrop that favours smaller players which have not invested in infrastructure.
No doubt it has not been lost on Vodafone that the Irish owner of the largest player wants to sell up and re-enter the market as virtual network operator without any infrastructure. It would be foolish not to wonder if perhaps Eircom knows something it does not and hence Vodafone's desire for clarity about the regulatory environment going forward.
Shareholders will also draw some comfort from Mr Kane's apparent willingness to engage at last in serious talks with Mr Denis O'Brien, albeit after delay. of more than six weeks. His earlier reluctance to talk to eIsland seems to have paid some dividends by creating a space for other bidders to come forward.
Yesterday's announcement that there are at least two other parties interested in the fixed line business, one a financial consortium, will put pressure on Mr O'Brien to raise his offer if he is serious about buying the business. The appearance of a purely financial buyer is a strong indication that the fixed line business is worth significantly more than the €2.25 billion Mr O'Brien offered.
Disappointing though the results may have been, with profits falling 30 per cent at the interim stage, they are in line with expectations. The firm signalled earlier this year that it was making a €412 million provision aimed at reducing its cost base over the next three years.
It is intended to reposition the fixed line business to live with the low margins that will define the future business as the market is opened up to competition. Interest in the fixed line business shows Mr Kane's strategy is appropriate.
