LONDON — Shareholders of the Railtrack Group will be offered a £1.3 billion ($1.8 billion) bailout this week as part of a government-backed bid for the company, the insolvent owner of Britain’s train tracks and stations, according to a wire service.
The nonprofit company set up by Stephen Byers, the transport secretary, will offer £500 million ($712 million) for Railtrack, the group’s insolvent unit, a government spokeswoman said today. Including group assets of £800 million, shareholders would receive 250 pence a share, 30 pence less than the amount they last traded.
The government said it would contribute £300 million of taxpayers’ money, backing down from previous promises. The move is seen by some as an effort to compensate shareholders and placate the private sector, prompting renewed calls for Mr. Byers to resign.
Railtrack’s shares were suspended Oct. 8 at 280 pence, wiping out £1.4 billion ($1.9 billion) of market value, after Mr. Byers successfully asked Britain’s High Court to put the company into administration. Railtrack Group and its shareholders have been preparing to sue the government for compensation.
“The group has had no formal offer as yet; however, this appears to be a positive move forward towards achieving our aim of getting fair value for shareholders,” a spokeswoman for the Railtrack Group, Sue Clark, said in an interview.