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Ferry firm sale would net owners millions
OWNERS of cross-Solent ferry Red Funnel could be in line for a cash bonanza worth tens of millions from the sale of the historic firm.
As reported by the Daily Echo, company chiefs are considering selling Red Funnel for £200m, which would net a hefty profit on the £60m management buyout deal just three years ago.
Such sky-high profits are certain to leave a bitter taste in the mouths of commuters who rely on the Isle of Wight to Southampton service but complain it is among the most expensive crossings in the UK.
If the 146-year-old business is sold, it will be the third time in less than seven years it has changed hands after being sold for £71m by Southampton docks owner ABP in 2000.
The Daily Echo understands that the possible sale would not affect the 400 staff because the business, which is part-owned by the HBOS, would be sold as a going concern.
Red Funnel was the original ferry operator to the Isle of Wight and has been operating from Southampton to Cowes since 1861.
"We've no changes planned in the senior management team or in our on-going commitment to provide a pre-eminent cross-Solent ferry service. It's very much business as usual." Red Funnel managing director, Tom Docherty.
Managing director Tom Docherty confirmed that bankers NM Rothschild and Sons had been engaged to look at options for a possible sale.
He said: "We've no changes planned in the senior management team or in our on-going commitment to provide a pre-eminent cross-Solent ferry service. It's very much business as usual."
Earlier this month commuters who use the service called for an inquiry into the inflation-busting costs of ferry travel between Southampton and the Isle of Wight.
The group Ferry Passengers for a Fair Deal are demanding that the Competition Commission and the Office of Fair Trading investigate the costs of the Solent crossing.
The group points out that since 2004 the prices charged by Red Funnel and rival WightLink for extended return tickets and season tickets have both gone up by between two and three times the rate of inflation.
As reported by the Daily Echo, company chiefs are considering selling Red Funnel for £200m, which would net a hefty profit on the £60m management buyout deal just three years ago.
Such sky-high profits are certain to leave a bitter taste in the mouths of commuters who rely on the Isle of Wight to Southampton service but complain it is among the most expensive crossings in the UK.
If the 146-year-old business is sold, it will be the third time in less than seven years it has changed hands after being sold for £71m by Southampton docks owner ABP in 2000.
The Daily Echo understands that the possible sale would not affect the 400 staff because the business, which is part-owned by the HBOS, would be sold as a going concern.
Red Funnel was the original ferry operator to the Isle of Wight and has been operating from Southampton to Cowes since 1861.
"We've no changes planned in the senior management team or in our on-going commitment to provide a pre-eminent cross-Solent ferry service. It's very much business as usual." Red Funnel managing director, Tom Docherty.
Managing director Tom Docherty confirmed that bankers NM Rothschild and Sons had been engaged to look at options for a possible sale.
He said: "We've no changes planned in the senior management team or in our on-going commitment to provide a pre-eminent cross-Solent ferry service. It's very much business as usual."
Earlier this month commuters who use the service called for an inquiry into the inflation-busting costs of ferry travel between Southampton and the Isle of Wight.
The group Ferry Passengers for a Fair Deal are demanding that the Competition Commission and the Office of Fair Trading investigate the costs of the Solent crossing.
The group points out that since 2004 the prices charged by Red Funnel and rival WightLink for extended return tickets and season tickets have both gone up by between two and three times the rate of inflation.
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