Investors hope Stagecoach can stay on track over east coast mainline
City reacts positively to privatisation of rail service – analysts estimate franchise could be worth 20p-30p on Stagecoach’s shares
Despite the east coast mainline rail service returning £1bn to taxpayers over the past five years in public hands – not to mention receiving a positive response from customers – the government pushed ahead with re-privatising the business anyway.
The winner of the franchise – announced at the end of last month – was Inter City Railways, 90% owned by Stagecoach and 10% by Virgin Trains. The duo also owns the west coast franchise, meaning it runs both main routes between London and Scotland.
Source: Guardian Transport