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PROTESTORS CONVERGE ON COSTAIN FOR EGM

19 Jul 1996

PROTESTORS FROM NEWBURY CONVERGE ON COSTAIN FOR EXTRAORDINARY GENERAL MEETING

The trouble construction company Costain faces an uncertain future at an extraordinary general meeting to be held on Monday 22 July. [1]

Protestors against the Newbury Bypass will hold a demonstration outside the EGM from 9.30 am.

If the company does not succeed in getting shareholders to accept the buy out offer, there could be further delays to the construction of the controversial Newbury bypass.

Costain has accepted that the buy out offer which is the subject of the meeting is "the only available means of securing the continuing support of Costain's banks, upon which the group is dependent for its ability to continue trading". However, the two major shareholders, who together own 38.3% of the ordinary shares "did not feel able to support the proposals at the time of the announcement on 4 July 1996". [2]

The Highways Agency admitted this month that it has "made no assessment of the costs to the Agency should Costain fail to meet its contractual obligations". [3]

Simon Festing, Transport Campaigner at Friends of the Earth said:

"It's sink or swim for Costain. And the future of the beautiful Berkshire countryside around Newbury could rest on the outcome of this meeting."

ENDS

NOTES TO EDITORS:

[1] The EGM will take place at the Queen Elizabeth II Conference Centre,Broad Sanctuary, London SW1P 3EE at 10.00 am.[2] Shareholder letter from Costain. 12 July 1996.[3] Letter from the Highways Agency to Mr Keith Hill MP. 8 July 1996.

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