Aer lingus shares

H

harrimi

Guest
I spent 30 years plus working for aerlingus. I took
redundancy/ early retirement package in sept 2002.
I was involved in the approved profit sharing scheme and
have approx 3200 shares, I will have to sell shares after the third anniversary of their allocation. Ifind this very annoying as the co has announed great profits and are
trying to reduce the workforce by 1300 people to sell
the company. I believe the shares will increase dramatically. and I who built the company will loose out
financially. I am advised that if I dont specify price for
each spare they will be sold off at the going rate now
at 1.22 approx .Ryan Air shares are 3 times greater
and I believe in time aer lingus will also increase,
I am on pension and need this money
any advice you can give greatly appreciated
 
Are you sure this is right? In my profit sharing scheme (and I believe the terms are set by the government) you CAN sell the shares after 3 years but you dont HAVE to. They can be held in trust or transferred to an account with a broker, or indeed you can get the certificates. I you own the shares you should be able to hang on to them. I suggest that you double check the information you were given before you worry too much about it!

best wishes,
Diziet
 
"I am advised that if I dont specify price for
each spare they will be sold off at the going rate"
Why not specify a price of €5. What happens then?
Rgds
Red
 
I was asked to sell at last auction, but I put a value
of 5 euro on each share. The shares at the last auction
in MAY 2004 was 1.22 euro but I was advised since that
the shares may be sold at next auction with no minimum
price. The above relates to shares received in May 96
May 97 Aug 98 and July 99. Shares allocated to me in
Sept 2001 can be retained by me until after the third
anniversary of their allocation. I was advised by a friend
recently whose husband works for another semi state
body did not have to sell after 3 years,
I cannot understand why we are different?
Some people are going to gain at my expense and I
think its groosly unfair.
 
I think you need professional advice from a good accountant.
good luck,
Diziet
 
Didier

Thanks your advice, will let you know

Regards
 
I checked with pricewaterhouse and they told me the
rules were set up by the trustees, agreed by the trade
unions and the gov that you would have to sell shares
within 12 months of you parting. and if I wanted to pursue it further to contact aer lingus. I contacted the
aerlingus person who is involved and he advised rules
changed recently to allow retired staff to hold shares for
3 years whick is additional 2 years. Then you have to
sell .and he told me its pointless getting professional
assistance ,the rules are there. at least I have another
12 months .
 
Well in that case there is a simple option : as soon as you sell your shares and get the money, go to a stockbroker and buy them straight back! OK, you will incur commission costs, but if you really would like to hold the shares in the expectation that they will go up, then this is a practical way of going about it. (just don't spend the money in between!)

Disclaimer: I don't have a crystal ball, so have no idea how aer lingus shares will perform!

cheers,
Diziet
 
Diziet,

"go to a stockbroker and buy them straight back"

AFAIK,not possible at The moment anyway. AL is still a semi-state company, but in the near future who knows.
Rgds
Red
 
Hiya,

good point - I was assuming the shares would be trading publicly by then.

cheers,
Diziet
 
I was advised today that the pilots who have retired

and who would have bought a lot of shares may

challenge the decision re compulsary selling after

3years . It could be interesting. THe downside

is that the pilots presently working can buy the shares

very cheap at the next auction before company is sold

off.. Will have to wait and see
 
"THe downside is that the pilots presently working can buy the shares very cheap"
There is no such thing as a cheap share, especially in the airline business. The pilots who bought before , paid dearly for each share, and things could get worse. I would be reluctant myself to put my own money into airline shares. You should have taken the money.
Rgds
Red
 
This won't affect you now that you've retired, but as a general rule putting your life savings into the shares of the company you work for is a risky prospect.

If the company hits trouble and let's you go it's likely that the share price will fall too, so you get a double whammy.

Ask anyone who worked at Enron for example.

It was amazing a few years ago to see loads of people with considerable wealth tied up in the shares of one company, the one tey worked for, thanks to SAYE schemes and Share Options etc.

-Rd
 
..

You'd be off your head to put any money into any aviation company, especially Aer Fungus. Once the unions oust Willie Walsh, the whole place will slide down the toilet again.
 
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