No Railtrack cash from Byers

TRANSPORT Secretary Stephen Byers failed to offer much comfort to Railtrack shareholders as he ruled out Government compensation for investors marooned by his decision to put it into administration nearly seven weeks ago.

In his first meeting with the Railtrack Shareholders' Action Group since that decision, Byers said: 'There is no question of using taxpayers' money, yours and my money, to compensate the shareholders for what was basically a bad investment. If Railtrack had not been insolvent the company could have opposed my petition in court. It did not.'

The action group, which speaks for investors with more than 40% of the equity, said it still may pursue legal action against the Government, but the meeting was constructive.

'Byers accepted shareholders should get the value to which they are entitled. But it all depends on how you define entitled. The definition may be settled amicably or it may have to be settled in court,' said Neil Ostra of fund management group Marathon.