Eurotunnel shares slide

Published on Friday 6 July 2007 00:08

EUROTUNNEL'S new shares have lost half their value this week, prompting fears that the arduous and painful restructuring of its enormous debts has been a failure.

The shares, trading as GET, opened at 0.78 in Paris on Monday, the first day of trading, and yesterday were changing hands at 0.39.

The new shares were issued following the channel tunnel operator's deal with its creditors and shareholders to replace its 6 billion of debt with a new 2.84bn facility.

A spokesman insisted yesterday the restructuring had been a success.

"We thought that the shares should have started at 0.35 to 0.37 as that would have been a proper reflection of historical share prices in the old set-up," he said.

The group, which saw traffic jump 11 per cent in the first quarter, is due to release first- half passenger and sales figures soon.

"We feel 0.39 is a much more realistic position," a spokesman said. "The company can evolve and grow on the basis of its trading results."