Intercity Trains In GBP1.7Bln Sell-Off- Newspaper

11th Jul 2010 12:51

LONDON (Dow Jones)--A consortium of City investors is close to seizing control of a third of Britain's trains for about GBP1.7 billion, said U.K. newspaper The Times on Sunday citing sources close to the situation. The investors, 3i Infrastructure PLC (3IN.LN), Morgan Stanley Infrastructure and Star Capital, have teamed up to buy the rolling stock leasing business owned by HSBC Holdings PLC (HSBA.LN). It owns 4,000 U.K. trains, including several distinctive fleets such as the Intercity 225 trains, that run between London and Edinburgh and the Javelin high-speed commuter trains that provide services between London and Kent. The business was one of three created and sold off when British rail was broken up in 1990s. The private consortium has been given a period of exclusivity to finalise the deal and a price of GBP1.7 billion has almost been agreed with the deal expected to close by the end of the month, said the newspaper citing sources close to the situation. 3i, Morgan Stanley and HSBC were not immediately available to comment. Newspaper Web site: http://www.timesonline.co.uk -London Bureau, Dow Jones Newswires; +44 (0)20 7842 9320 (END) Dow Jones Newswires July 11, 2010 07:51 ET (11:51 GMT)