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DJ Debt No Issue For Channel Tunnel Rail Link Bidders--Report

DOW JONES NEWSWIRES

LONDON (Dow Jones)--Investors bidding for the Channel Tunnel rail link will be able to take on an unlimited amount of debt to finance their offers, the Times reported Saturday, citing an insider close to the sale.

The newspaper said it is understood that the U.K. government won't make debt levels a criteria when judging any bids.

The railway, which runs from St. Pancras station in central London to the Channel Tunnel, is known as High Speed 1 and is expected to raise between GBP1.4 billion and GBP2 billion as part of a wider sale of state assets, the newspaper said.

Citigroup Inc. (C), the government's adviser on the sale, has received up to 15 applications to bid under a pre-qualification regime, the newspaper said.

The Times added that the deadline for first-round bids is mid-August and UBS AG (UBS, UBSN.VX) is yet to receive any formal bids.

Newspaper Web site: www.timesonline.co.uk

-London Bureau, Dow Jones Newswires; +44 (0)20 7842 9269



(END) Dow Jones Newswires

July 31, 2010 05:44 ET (09:44 GMT) Copyright (c) 2010 Dow Jones & Company, Inc.