Feeds

Freeserve bosses hold onto their millions

Share option scheme scuppered T-Online deal

  • alert
  • submit to reddit

The Essential Guide to IT Transformation

Share option friction and press leaks all played a part in the collapse of T-Online's £6 billion bid for Freeserve, the Dixons ISP boss claims.

John Pluthero, Freeserve's 38-year-old CEO, told The Telegraph there were "a whole bunch" of reasons the deal bombed. Chief issue seems to have been Freeserve's share option scheme. All Freeserve staff have options equivalent to one year's salary, with senior execs holding a lot more. In total, the company has issued 7.5 million options - worth around £45 million at T-Online's bid price.

But there was no way for Freeserve staff to transfer these options into T-Online stock as its exec have no such incentive scheme and are paid straight salaries.

Secondly, Pluthero blamed the media and interference from the parent companies - Dixons and Deutsche Telecom. "The degree of press comment made things more difficult and the timetable was too demanding," he told The Torygraph..

But Pluthero and bankers seemed to agree that the deal was far from dead. "This thing will move to some sort of resolution and it is most probably going to be with T-Online," said one adviser. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.