E&Y faces 'collaborative' Railtrack bid
WestLB, the bank preparing a bid for Railtrack, the collapsed rail infrastructure company, has asked administrators to consider a 'collaborative approach' to bail out the troubled company.
According to reports, WestLB has written to Ernst & Young, the Railtrack administrators, outlining its proposed approach of avoiding a competitive auction, saying the size and complexity of the company made such a process difficult and would delay any restructuring of the company.
Although E&Y has yet to respond, it is believed WestLB pitched the idea to the administrators at a meeting last week, followed up in a letter which raised the bank’s concerns about a possible conflict of interest at the Transport Department over the proposed not-for-profit bid.
Links
Ex-Tory minister slams Railtrack saga
For & Against: Putting Railtrack into receivership