Vodafone investor gets letter of rejection overturned

A Vodafone shareholder who challenged Computershare's assertion that details of his preferences in relation to its €80 billion payout had arrived too late says he has had it overturned.

The shareholder had despatched the “form of election: return of value” outlining his choice – to have the money paid tax-free as capital rather than subject to income tax – on January 14th.

However, he said he received four letters last week notifying him his letters for each of four family shareholdings had been received after the February 20th deadline.

The rejections were dated February 25th and arrived at his home address on February 27th, less than two days later. “As I had posted the four forms five weeks before the deadline, this came as bit of a shock,” he said, “particularly in view of the tax implications.”

People who failed to express their preference to have the payment of €1.24 per old Vodafone share treated as capital will face bills for income tax, universal social charge and PRSI – ranging from 26 per cent to 55 per cent of the Vodafone money.

The shareholder rang Computershare in Bristol, which confirmed his letters had, in fact, arrived on January 24th and the rejection letters had been sent in error.

The case raises hope for hundreds of other Irish Vodafone shareholders who had their choices rejected by Computershare on grounds they missed the deadline.