Government troubleshooter Sir Adrian Montague is putting together a takeover offer for London & Continental Railways (L&CR), the Eurostar co-owner and builder of the Channel tunnel rail link which has interests in some of the South East’s biggest regeneration schemes.
Sir Adrian, a former Network Rail deputy chairman and chairman of Crossrail, is understood to have made a tentative approach to the state-backed L&CR with the financial backing of investment bank Goldman Sachs.
He is also understood to have sounded out transport secretary Alistair Darling about the government’s attitude towards a change of ownership at L&CR.
Sir Adrian has worked closely with the government before on major private financing deals and was instrumental in Network Rail’s takeover of the national rail infrastructure from Railtrack.
London & Continental is close to completing its 68-mile line to the Channel tunnel, which has cost £5.8bn.
It also co-owns Eurostar alongside state railway operators in France and Belgium.
However, Sir Adrian is thought to be equally interested in London & Continental’s 120-acre site in Stratford, east London which will accommodate the Stratford City regeneration scheme and much of the 2012 Olympic Village, as well as sites at King’s Cross, Ebbsfleet and Ashford where major redevelopment is planned.
It is owned by eight shareholders including Bechtel, National Express and UBS with just over 20% each; France’s SNCF and Electricite de France with 13% each; and Arup and Halcrow with smaller stakes.
However, the Treasury and ministers have the right to veto a change of control and several of LCR’s shareholders are understood to be keen to exit when building of the rail link is completed.
References: EGi News 15/02/06
