Railtrack holds fire on Byers lawsuit

STEPHEN Byers has won a last-minute reprieve. Railtrack is reconsidering its lawsuit against the Transport Secretary and has postponed the next court hearing which had been due today.

This follows Byers' belated decision to compensate shareholders. Railtrack will receive £500m for the network, including £300m from taxpayers. It has also had a £375m bid for part of the Channel Tunnel rail link. 'We have postponed our application to the courts,' the company said.

When the directors consider the bids, they will look again at 'what steps, if any' they may take against Byers.

Railtrack investors expect to get 250p a share back. The company and major institutional investors had challenged Railtrack's administration in the courts. Byers insisted the company was bankrupt, but refused to reveal notes relating to his decision.