HSBC negotiating sale of train unit
Consortium in talks with HSBC over acquisition of Evershot
HSBC Holdings PLC is in final price negotiation talks with a
consortium of infrastructure funds over the sale of its train
rolling stock unit.
Morgan Stanley's infrastructure fund, 3i Infrastructure and
private equity fund Star Capital, are looking to acquire
The firm owns one third of Britain's rolling stock and has over
4,000 train coaches in the UK.
HSBC reportedly value the company at £2 billion, although the
final offer could be lower.
One source told Reuters: "They are haggling over the price, they
have to decide how much equity they put in."
CVC Capital Partners and Terra Firma Capital Partners expressed
interest in a deal but failed to make an offer.
The proposed sale is the latest evidence that banks are selling
off non-core assets to focus on key operations.
In June 2008, Royal Bank of Scotland sold its own train
division, Angel Trains, to a consortium fronted by Babcock &