Railtrack still under fire

almost endless negative newsflow has finally taken its toll on the company's share price

Investors in Railtrack have had a nervous week, following the Government's unprecedented seizure of the ailing utility. Reaction from both institutional and private investors has swung between shock and outrage since Sunday 7 October announcement from transport secretary, Stephen Byers, that the group was insolvent and would be taken back under government control. The controversy raged on all last week, as initially it appeared that equity holders would receive no compensation and lose all of their money. By bringing in receivers Ernst & Young, the group technically slipped into default...