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Topic: Angel Trains Sold To Babcock Brown (Read 1560 times)
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Lee
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Royal Bank of Scotland (RBS) has agreed a £3.6bn deal to sell the UK's biggest train leasing firm. The sale of Angel Trains to a group led by infrastructure giant Babcock Brown comes as RBS looks to bolster its capital base (link below.) http://www.rmtbristol.org.uk/2008/06/rbs_raises_36bn_from_angel_tra.html#moreAngel was formed by the UK government in 1994 as part of the privatisation of British Rail. RBS bought it in 1997. The largest of the UK's three rolling stock leasing companies, it is involved in passenger and freight train markets. The deal is financed by Babcock with a £2.8bn loan. RBS is looking to shore up its finances to cover losses during the credit crunch and focus on its finance business capital base. |
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Graham Ellis
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As a matter of interest, do we know how much "Angel Trains" was sold by the Government to RBS for in the first place, or is it more complex than that? Do we know the build price / asset value of the trains?
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Lee
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The new owners could be forced to sell parts of the Angel business within months if the Competition Commission decides that prices for leasing trains are too high (link below.) http://www.rmtbristol.org.uk/2008/06/trainleasing_draining_obscene.html#moreWe have made very conservative assumptions for this business and planned for all the outcomes. We don’t think that Angel has been making excessive profits and it may well be shown that they have provided good value for money. |
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