The Government is to tell the Telecom Eireann unions today how much it expects their members to pay for a 14.9 per cent share in the company, writes Padraig Yeates.

In return, it will be seeking a commitment from the unions to conclude negotiations on an Employee Share Option (ESOP) deal by the end of January.

The Department for Public Enterprise is expected to outline both the cost of an ESOP and the way in which it expects the unions to finance the deal. The unions want to pay for their share on the same basis as KPN/Telia, which bought 20 per cent of the company earlier this year for £183 million. Although the department may not put a specific value on the 14.9 per cent today, it has let it be known that it wants a much higher price to reflect Telecom's enhanced market value.