E&Y 'powerless' over Railtrack bids
Railtrack administrator Ernst & Young has admitted it might not be able to serve the best interests of creditors and shareholders as Stephen Byers will have the final say on any bids for the company.
According to a report in The Times today, Mike Rollings, one of the administrators, said the firm would not intervene if the transport secretary chose a bidder that did not offer the best value for Railtrack.
The news will be a blow to shareholders of the failed company who were reported to be incensed by the revelation.
It will also anger WestLB, the bank preparing a ‘collaborative’ bid for the company, which has already complained there is no ‘level playing field’ in the bidding process.
A spokesman for Ernst & Young said there would be quality control over the offers that the firm would put for to Byers.
‘But the final decision will rest with the secretary of state,’ he said.