Freeserve to reconsider staff share options

The UK internet service provider Freeserve is considering recalculating its staff share options after a long slide in its share price has rendered them virtually worthless.

The UK internet service provider Freeserve is considering recalculating its staff share options after a long slide in its share price has rendered them virtually worthless.

The move is being viewed by analysts as a bid to persuade key staff to stay with the organisation.

The company floated last July at a share price of 150p and saw its shares soar to a peak of 921p in February. But its shares are currently trading at 155p. However several high-profile American technology companies have made the move including computer giant Microsoft and internet book and music retailer Amazon.

If the company goes ahead with the measure it will be the first British company to attempt such a move, which follows a sharp fall in the value of technology shares.

The company is thought to be planning a rescue package to set its business back on course but analysts warned the measures might depress share values further, proving to the market that it did not expect them to rise again any time soon.

Freeserve shares put on 9.5p to 164.5p on Tuesday after the company agreed a business and advertising deal with Kingfisher, the UK retail chain.