Hk billionaire considers UK high-speed rail link

Hong Kong billionaire Li Ka-shing is considering a bid for High Speed 1, the fast rail link being sold by the Government for £1.5bn to £2bn...

Mr Li's Cheung Kong Infrastructure, which last month acquired the UK power grids being sold by France's EDF for a bigger than expected £5.8bn, is understood to have expressed interest in the 68-mile rail line linking London to the Channel Tunnel.

It was unclear last night, however, whether Mr Li had formally registered an indicative offer for the line ahead of Tuesday's deadline, so joining three other consortia thought to have put in bids.

Sources close to the auction are hopeful of encouraging a fourth bidder. France's SNCF is also a potential bidder.

The early favourite for the link is a consortium featuring Eurotunnel, its biggest investor - Goldman Sachs' Infrastructure Partners, which owns around 15pc of the Channel Tunnel operator - and M&G's Infracapital.

The consortium disclosed yesterday that it had strengthened its bid team with the support of two financial backers - Britain's Universities Superannuation Scheme and France's Caisse de Dépôts et Consignations.

It faces at least two rival consortia. One comprises Morgan Stanley Infrastructure, 3i Infrastructure and Abu Dhabi Investment Authority. The other is a Canadian combine including Borealis and the Ontario Teachers' Pension Plan - both well-know infrastructure investors.

While the Government has no hope of recouping the £5.7bn it cost to build the link, it is hopeful of getting a bid towards £2bn.

High Speed 1 is currently a wholly-owned subsidiary of the state-controlled London and Continental Railways, which is being advised by UBS. The Government is being advised by Citigroup.

Alongside Barclays and BNP, the two banks are thought to be involved in providing a staple debt package for bidders, worth around £1.2bn.

Source: www.telegraph.co.uk