mtrc-shareholders-dig-hk-government-out-of-a-hole

MTRC shareholders dig HK government out of a hole

Hong KongÆs two rail companies will merge but it is a messy arrangement that is a function of political expediency rather than sound financial practice.
Everyone knows that running railways is notoriously difficult but the Hong Kong government appears to have bent over backwards to make it even more complicated.

For the past four years it has been brooding over how to bring the city's two rail companies together under one company. The long running saga was settled earlier this week when the minority shareholders of Hong KongÆs mass transit railway - MTR Corporation MTRC û voted in favour of ômergingö with the Kowloon Canton Railway Corporation KCRC.

The government is calling it a merger but it is closer to a lease.

The scheme the government and its advisers Goldman Sachs and UBS eventually came up with, and to...
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