Railtrack group to fight offer

SMALL investors in Railtrack, led by a senior executive of the company, promise a 'lively' meeting of shareholders next month at Alexandra Palace convened to vote on today's offer of 245p to 255p for their shares.

Dealers, however, reported Railtrack's 250,000-strong army of shareholders are voting already with their feet. More than 90m shares were traded on the re-listing today of Railtrack's suspended stock in a range of between 215p and 226p as investors sought an early exit.

Reacting to the offer - in which a first instalment of 160p to 180p is promised by January - Andrew Chalklen, head of project planning at Railtrack and chairman of the Railtrack Private Shareholders Action Group, said: 'RPSAG is extremely disappointed Railtrack's board has recommended acceptance of the totally inadequate offer from the Government. We urged it to fight for its shareholders but it has funked that challenge. Shareholders will fight on.'

Geoffrey Howe, the ex-Clifford Chance lawyer brought in as Railtrack chairman to handle the offer, said litigation would bring 'five years of agony and uncertainty'.

Law firms and accountants Deloitte & Touche have shared £10m in fees advising on the offer.

Should you sell or hold?
Railtrack investors must wait