Railtrack buyout deal confirmed
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Manufacturing News, Source : TheManufacturer.com
Published : 27 Jun 2002 10:53
Railtrack shareholders will receive 245-255p a share in a £500m government deal to buy out Railtrack and put the railways under the control of a not-for-profit-company.
However, the announcement has been met with criticism from the Raitrack Private Shareholders Action Group. Andrew Chalklen, the group’s chairman commented: "We shall have to study today's announcement but we are still very much opposed to the offer and will vote against it."
The deal will be concluded around September with the first installment of shares returned to shareholders about four months later. But if they do not want to wait until next year, the shareholders will have to take their chances on selling on the stock market when trading in Railtrack shares reopens this morning.
Within minutes the shares slipped back to 221p.
With £300m of the £500m buyout money coming from the government's strategic rail authority (SRA) the deal will also have to be given clearance by the European commission.
Railtrack Group chairman, Geoffrey Howe, said that the deal was "in the best interests of shareholders" who would now be asked to vote on the rescue package at a general meeting on July 23.
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