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Article: Secondary market hots up, but who will get their fingers burned: Laing's at it. Carillion's at it. Secondary market transactions are no longer the recourse of failed companies. The big names smell a profit, but let's not get carried away.(News Analysis)
- Article from:
- Public Private Finance
- Article date:
- November 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The sale of 50% of the capital in the M40 motorway project to the Secondary Market infrastructure Fund is an important development for the PFI industry.
The government hopes that the additional liquidity created by a mature secondary market will play a role in building market capacity--a key concern as demand increases.
The majority of significant secondary market transactions so far have been little more than firesales, prompted by financial problems at the company doing the offloading. On the M40 deal, by contrast, the seller was in fine fettle when contracts signed.
This 170m [pounds sterling] project was part of the Highways Agency's first ...