Re-nationalisation & Shares?

Twointhebush

With talk of re-nationalisation of the Railways in the papers, what happens to people's shares in a railway if that happens?

kidmugsy

The railways, as distinct from the trains that run on them, are already nationalised. They were effectively stolen from the shareholders of Railtrack plc and used to set up Network Rail.

eskbanker

It's probably a moot point for at least two reasons:

1. It would only be relevant if Jeremy Corbyn became PM.
2. The style of renationalisation being discussed is simply not to renew franchises, rather than buying companies out, so the franchise-holding companies will continue to exist, but with less revenue.

longleggedhair

The best way to protect your shares (and your other assets for that matter) is to vote Conservative and ensure the communist nutcase and his even more nutty shadow chancellor never gets anywhere near Downing Street.

To be honest in the event of a Corbyn government the re-nationalisation of the railways will be the least of our worries. Look at what a Corbyn prototype government looks like in Venezuela.

jamei305

To answer the question, a nationalisation can be anything from the government paying a premium over the share price on a set date to acquire your shares, to the government seizing the company concerned and your shares becoming worthless overnight.

grey_gym_sock

in this case, as eskbanker says, the plan is just not to renew franchises.

the government does already have powers to take away franchises when the operator is messing it up badly (e.g. i'm thinking of southern rail), and hopefully a corbyn government would use those powers, unlike the current one.

it's amazing the level of rabid hostility that corbyn generates. when you look at the actual policies, they're mild, sensible reforms.

re railtrack: the shareholders got a fair bit of compensation in the end, IIRC. it was a very good thing that that was re-nationalized: railtrack had an appalling safety record, including fatal train crashes. the mechanics for how it was re-nationalized were a bit of a mess, though.

bostonerimus

Twointhebush wrote: »

With talk of re-nationalisation of the Railways in the papers, what happens to people's shares in a railway if that happens?

On the basis of poor performance maybe Virgin's etc franchise would not be renewed. That would obviously affect the share price.....caveat emptor.....and if the governmnet decided to run the operation I assume there's be some sort of deal done. if you choose to play in this area of the economy you must understand the risks.

le_loup

What a shame that an honest question should receive a few rabid Daily Mail type responses. Do people no longer have a pause (for thought) button?
It's the way of social media these days.

Thrugelmir

grey_gym_sock wrote: »

it's amazing the level of rabid hostility that corbyn generates. when you look at the actual policies, they're mild, sensible reforms.

Too many memories of the old British Rail and the power of the Unions to disrupt servives at the slightest excuse I'm afraid to say. Not days I'd wish to return to.

Glen_Clark

grey_gym_sock wrote: »

it's amazing the level of rabid hostility that corbyn generates. when you look at the actual policies, they're mild, sensible reforms.

Not if you are a £billionaire 'newspaper' owner domiciled in a tax haven and Corbyn has his eyes on your money :eek:
Its nearly as scary as an EU wide tax treaty :eek:
so you tell your readers to vote Brexit and Tory

Alexland

Thrugelmir wrote: »

Too many memories of the old British Rail and the power of the Unions to disrupt servives at the slightest excuse I'm afraid to say. Not days I'd wish to return to.

And do you remember the bad coffee in polystyrene cups with thin plastic lids?