Narrow guage: two consortia vying to build the 3bn pounds sterling Channel tunnel rail link may have bid on dangerously narrow margins

Article Abstract:

Chief executive of Union Link Colin Stannard, believes that the two rival consortia in the bidding for the high speed rail link from London to the Channel tunnel have made dangerous assumptions. Both Richard Branson's London & Continental and Lord Parkinson's Eurorail are seeking just 900-1 billion pounds sterling of public money to help build the 3 billion pounds sterling link. Stannard believes they have assumed that profitability of the European Passenger Servuces (EPS) trains will increases quickly, and they have not factored in risk of increases in constructions costs and they have assumed they will be able to claim tax relief against building costs.

author: Osborne, Alistair
Planning, Contracts, Virgin Group PLC, Eurorail

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Guessing game

Article Abstract:

Railtrack may be floated by the UK government even if the goal of privatizing 51% or railroad operating concerns has not been achieved. Many bidders for these franchises are seen to possess an immature comprehension of the activity, according to the Office of Passenger Rail Franchising (OPRAF) in a leaked coument. There is such controversy surrounding the privatization of Railtrack that it will be difficult to value. Railtrack reported an operating profit of 305 million pounds sterling for the FY 1994 to 1995.

author: Osborne, Alistair
Network Rail Infrastructure Ltd., Mergers, acquisitions and divestments

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Tall tales hit shares

Article Abstract:

Eurotunnel saw a drop in its share price in Aug 1995, and the French stock exchange regulator is examining allegations of insider trading. The Commission des Operations de Bourse (COB) is investigating trading in the company's shares by investment banks. The banks underwrote a May 1994 rights issue for Eurotunnel and share rpices dropped before the rights issue was announced. Eurotunnel is negotiating an agreement with the company's banks in 1995.

author: Osborne, Alistair
Securities, Eurotunnel PLC

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subjects list: Railroads
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