EIsland moved to increase pressure on Eircom's workers' trust yesterday, claiming it could have to pay up to €84 million more, if rival consortium Valentia matches eIsland's bid for the company.
The Employee Share Ownership Trust (ESOT) has backed the Valentia consortium, fronted by Sir Anthony O'Reilly, which bid €1.32 per share - an offer which includes cash now and the promise of further payments later.
However, eIsland, led by businessman Mr Denis O'Brien, is offering €1.36 cash per share.
EIsland was forced to raise its offer because Comsource, a joint venture between Dutch telecoms company KPN and Swedish telecoms group Telia, which holds 35 per cent of the shares, had given irrevocable undertakings to support Valentia unless an offer in excess of €1.355 cash per share was made.
EIsland's bid is backed by the Eircom board.
The ESOT, which has firmly backed Valentia to date, is crucial to the deal because it controls 14.9 per cent of Eircom.
EIsland said last night that if Valentia matched its offer, the ESOT would have to put up an additional €59 million.
This assumes that the ESOT will contribute 29.9 per cent of the equity. EIsland contended that, depending on the deal's structure, the ESOT might have to pay an additional €84 million if it contributes 42.5 per cent of the equity.
EIsland said paying an additional €59 million would leave only €37 million to be distributed among ESOT members, or €2,800 per member.
If the ESOT contributes 42.5 per cent of the equity, then this will leave only €12 million or €900 per member to be distributed, according to Eisland.
EIsland has structured its deal differently and said, under its proposals, the ESOT would have to pay €180 million - leaving the equivalent of €20,500 per member to be distributed.
