Shareholders in London & Continental Railways (LCR) replaced SBCWarburg as its banking advisers on the £5.4bn Channel Tunnel raillink. They called in Deutsche Morgan Grenfell .
The move is a double embarrassment for SBC Warburg: it is also ashareholder in the LCR consortium. Bechtel, the US engineering andproject management group, is believed to have initiated thereplacement.
LCR’s original proposal for funding the link collapsed when thegovernment rejected the consortium’s proposal for an additional£1.2bn of state funding. It was given 30 days to come up with analternative plan.
- Financial Times 09/02/98 page 7
- The Guardian 09/02/98 page 16
- The Daily Telegraph 09/02/98 page 25, 26 (The City Checklist)
