DfT invites firms to bid for advisory role on £200m Eurostar sale
The Department for Transport (DfT) has invited firms to pitch for an advisory role on the sale of the UK's stake in Eurostar. In recent weeks, the government body has begun a tender process for the headline legal role, a DfT spokesman confirmed to Legal Week. A number of banks have also been approached to provide financial advice.
February 11, 2014 at 03:44 AM
2 minute read
The Department for Transport (DfT) has invited firms to pitch for an advisory role on the sale of the UK's stake in Eurostar.
In recent weeks, the government body has begun a tender process for the headline legal role, a DfT spokesman confirmed to Legal Week. A number of banks have also been approached to provide financial advice.
If it goes ahead, the sale of the UK's stake – valued at around £200m by several analysts – is set to be one of the year's most high profile state divestments.
The tender is being overseen by general counsel Nick Olley, who left Burges Salmon last November to take over the DfT's 80-strong legal team.
"It has always been the case that there is no long-term intention for the UK Government to retain its stake in Eurostar," a DfT spokesperson said in a statement.
"The department is seeking to appoint advisers to support our assessment as to whether a sale of the UK government shareholding in Eurostar would be value-for-money for the UK taxpayer."
In 2012, Eurostar doubled its profits to £52m, on the back of sales revenues at £799m. Last year, the group – which is majority owned by French state rail company SNCF – carried more than 10m passengers for the first time since its launch in 1994.
A Legal Week report last year showed the DfT spent more on external legal services between April 2011 and December 2012 than any other department, with costs of £10.5m.
Firms which regularly advise the department include Pinsent Masons, Burges Salmon, Dentons and Freshfields Bruckhaus Deringer.
Freshfields is currently acting for the DfT on the procurement of the Crossrail project, with a team led by London energy and infrastructure head Alex Carver and counsel Jason Chamberlain.
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