Three hundred IFSC-based employees of Depfa Bank and 350 of their international colleagues stand to receive up to €144.23 million in cash and shares as a result of the group's €5.7 billion sale to investment bank Hypo Real Estate.

The exchange will be heavily skewed in favour of Depfa's top managers as the bulk of their remuneration is share-based. However, a large majority of Depfa's 750 staff will receive some part of a cash payment worth a total of €60.76 million for shares held by an employee trust.

They will also receive Hypo shares for their interest in Depfa's stock.

Based on Hypo's weekend share price of €49.17, they would receive €83.47 million in share-based compensation for their Depfa shares. Hypo's shares on the German market have since fallen to €45.71, a level which would significantly reduce the share-based aspect of the consideration if it persisted.

Depfa specialises in low-risk public sector lending. Its public-private partnership funding contracts include the Thornton Hall prison project.

The bank has its head office in Dublin but it is listed in Frankfurt. Its employee share ownership trust holds some 8.94 million restricted shares at present.

This includes shares held for members of the bank's executive committee, whose members rank among the highest-paid bankers in Ireland and Germany. Top managers and directors in Depfa received remuneration worth a total of €28.3 million last year, including significant share-based payments.

Shares are awarded to most staff in Depfa as part of their annual remuneration. As an incentive to staff to stay in the bank, these shares are subject to a three-year vesting period which starts a year after they are awarded.

However, the trust's rules say that all shares it holds would be immediately vested should Depfa be sold. The Hypo transaction, which is subject to shareholder and regulatory approval, is worth a total of €16.14 per Depfa share. This comprises a cash payment of €6.80 per Depfa share and one Hypo share for every Depfa five shares in issue.

Depfa shares gained 12 per cent on Monday after the deal was made public but the stock gave up 1.68 per cent of its value yesterday to close at €15.20. Hypo's shares, which fell 6.2 per cent on Monday, lost another 0.87 per cent yesterday to close at €45.71.

Hypo employs 80 people at the IFSC in Dublin. They and another 100 staff in Hypo's infrastructure financing division will join Depfa's operations if the deal goes ahead.

Analysts have been lukewarm in their response to the deal, with some pointing to increasing competition in the public sector lending market.