Face of Nation : Network Rail is said to have prepared a bid for the UK’s second largest steel producer British Steel’s rail service centre business, The Telegraph reported on Saturday.
Government-owned Network Rail submitted a letter of intent to buy part of the company responsible for the welding, finishing and storing of rails for Britain’s train network, late on Friday, it said.
The move by Network Rail is just one of about 10 bids likely to be submitted to the Official Receiver, which took control of British Steel last month, the newspaper said.
Banking and industry sources told Reuters on Friday that the company, which went into liquidation in May, has attracted interest from up to nine possible buyers, but far fewer firm bids were expected by an extended June 30 deadline.
A closure of the company, which produces high-cost long steel products used in construction and rail networks, would jeopardise 25,000 jobs, including 5,000 in Scunthorpe, northern England.
Network Rail would prefer that another buyer takes on British Steel, while it looks at a number of scenarios, but the UK government and the Receiver are keen to sell British Steel in its entirety to one buyer, the Telegraph added.
Sources previously told Reuters that none of the potential buyers would be willing to take on the whole company, even for a nominal sum, due to the need for capital expenditure to make it profitable after years of underinvestment.
Network Rail and British Steel did not respond to requests for comments outside regular business hours.
