ESOP bounty in store for A-I, Indian staff

New Delhi: In a move that could soften internal resistance to the proposed mega merger of Air-India and Indian, the government is planning liberal employee stock options (ESOPs) when the merged entity goes for an IPO.
In line with the guidelines laid down by Sebi, top government sources said, provisions would be made for ESOPs with a price discount thrown in as an additional incentive. The government is keen to float an IPO for the merged entity — which will become the largest airline in India — diluting nearly 20% of its stake.
The merger of A-I and Indian has now become a foregone conclusion and the current discussion is focussed on the modalities of the amalgamation, the sources said. The new entity would have nearly 35,000 employees eligible for stock options. Going by the current trends in the aviation industry, the ESOPs should turn into a bonanza for employees of A-I and Indian.
15/05/06 G Ganapathy Subramaniam/Economic Times

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