Railtrack this week crashed out of the FTSE100 index after its share price slumped dramatically by 17% on Tuesday to £3.65. The plunge followed a report by broker ABN Amro, giving the shares a price target valuation of just 58p. The report said that even taking the most optimistic viewpoint on funding, the shares could only be worth £3.08. City confidence has dropped with the realisation of how much money Railtrack needs to borrow. Spiralling costs on the West Coast Main Line, lack of government support and worries about enforced changes to the company following the election have also dented confidence.
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