The collapse in the value of Vodafone shares since the company bought Eircell in December 2000 means that the 450,000 former Eircom shareholders have lost almost 45 per cent of their original investment in the former State telecoms firm.

When Vodafone bought Eircell, Eircom shareholders received 0.9478 Vodafone shares for every two shares they held in the demerged Eircell. At the time the Eircell sale was announced, Vodafone shares were trading at £2.45 sterling. Since then, they have dropped to yesterday's £1.11.

That price puts a value of €0.86 on the original Eircell shares swapped for the Vodafone shares based on the current exchange rate.

Add in the €1.335 that Eircom shareholders received from Valentia Telecommunications for the Eircom fixed-line business, and shareholders have seen the value of their Eircom shares they bought for €3.90 in the July 1999 flotation fall to the equivalent of €2.195.