Eisland's efforts to woo members of Eircom's employee share option scheme (ESOT) has received a further setback, following a ruling that it cannot write to individual members to press its case. It means that eIsland's hopes of trying to take over Eircom are effectively finished.

It is understood that eIsland asked the Irish Takeover Panel for the names and addresses of the individual ESOT members. The panel in turn asked the ESOT if it would release this data, but the ESOT declined. Some ESOT members were understood to be angry at the prospect of personal details being passed to eIsland.

EIsland also suggested to the panel that it could provide direct mail information to the ESOT which could in turn distribute it, but this was also declined.

It was unclear last night whether eIsland had been told formally by the takeover panel that it could not have the names and addresses. An eIsland spokesman would only say it could not comment on matters currently under discussion with the panel.

The ESOT controls 14.9 per cent of Eircom and its support is vital for a successful takeover of the telecoms company. It favours a bid by the Valentia consortium fronted by Sir Anthony O'Reilly.

Its bid is €1.365 per share, while eIsland, led by Esat founder Mr Denis O'Brien, has bid €1.36.

The ESOT declined to provide the information on the basis that it had already posted a document outlining the offer to its members.

If eIsland could win the support of the ESOT's 13,000 members, it could unwind the irrevocable undertakings which Comsource, a 35 per cent Eircom shareholder has given Valentia. Comsource, a joint venture between KPN of the Netherlands and Telia of Sweden, will support Valentia unless the ESOT switches allegiances or eIsland bids €1.50 per share. All agree that €1.50 per share is a non-runner.

It appears that eIsland has virtually conceded it cannot win the race now. It can still leave the offer on the table in the hope that something goes wrong with the Valentia bid.ESOT members are voting on both offers and results are due in by August 27th.