Sports Calendar

K-Capital, the US vulture investor, took a more cynical view than Mr Norris. It bought 13 per cent of Jarvis from a relieved unit trust group in May, when the controversial contractor’s survival was already being questioned and its shares touched a low of 72p. The carrion-hunter hoped to make a good turn when Jarvis was sorted out, broken up and sold like Amey before it. Yesterday, K-Capital reported its holding was over 17 per cent, yet even cynics can be a touch optimistic in hindsight. Jarvis fell to a low of 25p yesterday as shareholders rushed for the exit, valuing its equity at just £36 million.

The big hope is that Jarvis, under the beady eye of its bankers, may be able to sell its stake in Tube Lines to Bechtel and Balfour Beatty, its partners, for £100 million or more. Tube Lines represented the best hope for future profits, as first rail maintenance and then school buildings contracts had before.

Even if the Tube stake did fetch a good price in a forced sale, however, the banks would be the chief beneficiaries. Value may lie in longer-term rail renewal contracts but the vultures and the banks are likely to be fighting over scraps. Having seen its financial credibility disappear, Jarvis has little hope of winning new contracts for a long time.

Thinly capitalised special purpose vehicles used for PFI deals have also created a new generation of off-balance sheet worries that are causing more eyebrows to rise by the month. If there is no recourse to companies, that does not mean there are no losers if things go wrong. After public sector pensions, this could be the next nightmare for Council Tax payers.

The bets are off for Wembley’s US punt

THE perils of investing in America were demonstrated yet again yesterday as Wembley, which these days derives the vast majority of its profits from a Rhode Island racetrack, said that political shenanigans have put paid to a £309 million takeover. Even if the Rhode Island legislature fails in its attempt to push through plans for a new gambling emporium in competition with its Lincoln Park facility, Wembley must find a new buyer willing to step into the shoes of BLB Investors.

In normal circumstances, Wembley may have picked up the phone to the underbidder. But given that MGM Mirage, which withdrew in May after being outbid by BLB, has just launched a $7.9 billion (£4.3 billion) bid for Mandalay Resort Group, a Las Vegas operator, the chances of it returning look remote.

Wembley is also unlikely to be able to to restart the process in earnest until the forthcoming fraud trial has been concluded. Until yesterday, the previous low point in Wembley’s fortunes came last September when its then chief executive was among those indicted for allegedly seeking to bribe Rhode Island officials.

Although the Rhode Island political situation may yet improve to Wembley’s benefit, chances of a fresh bid anywhere near the 860p on offer from BLB look remote. The only winners are Julian Treger and Brian Myerson, the Active Value duo, who recently sold their 22 per cent stake to BLB for 800p a share, 50 per cent above where the stock languishes today.

IF Abbey, the bank, does offload its with- profits insurance funds it will swell the already large amount of money tied up in closed insurance funds that is looking for new home. A tidy number of buyers lurk with the theoretical intent to pounce on the assets which could generate good profits in at least the short term. But mis-selling compensation fears hang, and the assets are by definition ones that are withering on the vine. Vendors may have to adjust their pricing expectations down to see deals done.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive