French rail denies Eurotunnel takeover plan

19th April 2004, Comments 0 comments

PARIS, April 18 (AFP) - The French state-owned rail operator SNCF denied a report Sunday that it was ready to make an "audacious" bid for Eurotunnel, the company that runs the nearly insolvent Channel Tunnel rail link.

PARIS, April 18 (AFP) - The French state-owned rail operator SNCF denied a report Sunday that it was ready to make an "audacious" bid for Eurotunnel, the company that runs the nearly insolvent Channel Tunnel rail link.

"It's poppycock, pure and simple," an SNCF spokesman told AFP.

The Observer quoted unnamed industry sources as saying that Eurotunnel's creditors were expected to open talks with SNCF in the next fortnight as part of an attempt to secure the company's future.

The paper added that banks were ready to cut a deal with SNCF because they lacked confidence in Eurotunnel's new board.

The board was installed earlier this month after shareholders ousted the previous management of the ailing Franco-British company, which has a debt pile of EUR 9 billion (USD 10.8 billion).

© AFP                                                   

                                                         Subject: French news

 

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