The Guardian said:
FirstGroup slides on talk it will miss out on East Coast franchise
Reports suggest Eurostar and Keolis frontrunners for controversial privatisation of rail service
FirstGroup shares have come off the rails following reports it may miss out on yet another franchise, this time the prestigious East Coast mainline.
The government is due to announce a winner this week of the business, which runs services from London to Scotland and has successfully been in public hands for five years.
Reports over the weekend suggested Eurostar and Keolis were frontrunners, leaving FirstGroup and a joint bid from Virgin and Stagecoach on the sidelines.
This would be the latest disappointment for FirstGroup, which was passed over for the ScotRail franchise, lost out for the Thameslink Great Northern service as well as the Essex Thameside operations.
FirstGroup shares have fallen 9.6p or 8% to 110.2p, while Stagecoach has slipped 4.3p to 363.8p.
The publicly owned East Coast service has returned more than £1bn to the taxpayer since it took over from National Express, which had run into financial difficulties. Rail unions have called the plan to reprivatise the service as a “national disgrace” and launched a campaign against the proposals.
http://www.theguardian.com/business...talk-it-will-miss-out-on-east-coast-franchise
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The Telegraph has picked it up now, and seems to endorse Keolis/Eurostar.
However, it's still based on watching the shares of First Group and Stagecoach, so it's not inside information.
You could argue the DfT dropped a strong hint in October when it said it was selling off its stake in Eurostar.
Maybe that's all it is.
http://www.telegraph.co.uk/finance/...y-rumours-East-Coast-will-go-to-Eurostar.html
And the Guardian:
http://www.theguardian.com/business...talk-it-will-miss-out-on-east-coast-franchise
& The Telegraph
FirstGroup hit by rumours East Coast will go to Eurostar
Shares bus and rail operator slump amid fears it has lost out on yet another UK rail contract
Shares in FirstGroup hit the buffers on Monday, falling 10.5pc at one stage, amid rumours that it may have lost out on a contract to run the prestigious East Coast Main Line to two companies, including Eurostar, which are majority owned by France’s state railway.
The Department for Transport (DfT) is expected to announce the winning bidder for the East Coast line this week from a shortlist of three.
Keolis, an operator 70pc owned by France’s state railway, SNCF, submitted a joint bid with Eurostar, which has the same majority shareholder.
FirstGroup, plus a joint venture between Stagecoach and Sir Richard Branson’s Virgin Trains also made the shortlist.
Shares in FirstGroup closed down 9.68pc at 108.2p amid fears the bus and rail operator has missed out on yet another franchise. FirstGroup has already come away empty-handed from four rail franchise competitions this year.
Stagecoach shares also closed down 1.55pc at 362.4p.
Any decision to hand the London to Scotland East Coast line to Keolis/Eurostar will re-ignite a highly charged debate around the re-nationalisation of Britain’s railways.
The Labour Party has proposed allowing a train operator owned by the UK government to bid for lucrative rail contracts, pointing out that foreign state-owned companies are allowed to do so but Directly Operated Railways (DOR), a group owned by the British taxpayer, is not.
DOR is an operator of last resort and can only step in to run railways when a franchise goes wrong - as was the case in 2009 when National Express handed back the keys to the London to Scotland East Coast line.
The Government sparked outrage when it said it would re-privatise the East Coast line before the General Election, prioritising it above other franchises. The East Coast Main Line is the only line run by DOR.
Ministers stirred up further discontent when it was announced in October that the Government was pressing ahead with the sale of a 40pc stake in Eurostar. SNCF owns 55pc of Eurostar, while the remaining share is owned by the Belgian government.