Feeds

Freeserve bosses hold onto their millions

Share option scheme scuppered T-Online deal

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
What a Mesa: Apple vows to re-use titsup GT sapphire glass plant
Commits to American manufacturing ... of secret tech
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Designing and building an open ITOA architecture
Learn about a new IT data taxonomy defined by the four data sources of IT visibility: wire, machine, agent, and synthetic data sets.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.