The popular Madison explanation for the resounding htm htm success of the Railtrack sale is that it has been so loaded with sweeteners that it is a buy whatever the risks of an attack on the company by a Labour government There is certainly a lot of truth in this. As CommunityDevo this was a consultation process, they history Themes CommunityDevo were now advising them history to write direct to Ofgas.He defended the pounds 400,000 cost of the exercise. "We think it is critical to communicate to shareholders because of Madison the amount of revenue which is at Madison stake and the history Themes CommunityDevo proposals, which are very far reaching, are probably one of the most serious to affect the British gas industry."This is the first time British Gas has written direct to shareholders over a corporate matter of this nature.. In this connection, individual shareholders can make a CommunityDevo real difference because gas industry legislation htm obliges the Madison htm regulator to consult with interested parties on new measures such as those now proposed."Mr Giordano reiterated that the effect of the proposals could be to cut revenues between pounds 650m and pounds 850m, more than the total dividend paid to shareholders last year. He also warned that the price CommunityDevo formula would "severely limit" any subsequent recovery of profitability, while the "draconian" cuts in operating expenditure would require job cuts of between 8,000 and 10,000.A history spokesman for the company said they had had history several hundred calls from small shareholders expressing their Themes concern at what Ofgas is proposing and asking what they can do. The news came as the shares staged a minor recovery, Themes rising 3p to 177.5p, but they still ended 50.5p down since Ms Spottiswoode unveiled her thoughts on Monday. In a letter to the gas group's 1.7 million shareholders, the chairman, Richard Giordano, reiterated his rejection of the regulator's "damaging" proposals and called on them to write to Eileen Marshall, the Ofgas director of regulation, expressing their concerns. "You can be Themes sure that British Gas will defend the interests of shareholders against these unprecedentedly Madison htm harsh and ill-founded measures from Ofgas.

British Gas is attempting to enlist the support of its shareholders in fighting the new tougher regulatory regime proposed earlier this week by Ofgas director-general Clare Spottiswoode. Institutions pay a fixed first instalment of 200p a share and private investors receive a 10p discount on this.Results are also awaited from a tender offer for private investors who are allowed to subscribe for larger numbers of shares but without receiving the perks in the retail offer. The tender is aimed at investors who want to take advantage of tax relief through PEP schemes.By coincidence, the results of the privatisation are being counted as Labour's policy forum meets to discuss industrial and economic proposals that include changes in the way the railways are regulated and controlled.The formal announcement of the allocations of shares is expected tomorrow with trading due to begin on Monday.Comment, page 19. This suggests a last minute upgrading of the size of offers made by professional investors.The results make it almost certain that the offer will be priced right at the top of the 350p to 390p range promised in the prospectus, but a final decision may not be made until late today, after meetings between Sir George Young, the transport secretary, his officials and City advisers.City sources were already describing the results as a triumph after a privatisation process that set off an unprecedented level of attacks by Labour and a series of embarrassing leaks from railway industry sources that at times made it look as if the sale would not get off the ground.Assuming the company is sold at 390p a share, it will be valued at pounds 1.95bn, well above the pounds 1.5bn widely predicted earlier this year.

Before joining PowerGen in its run-up to flotation, Mr Rennocks was finance director at Smith & Nephew, the healthcare group.. The Railtrack privatisation was looking a runaway success last night when it emerged that around pounds 10bn of institutional funds were chasing the shares. The reshuffling of the finance directors' pack was prompted by the announcement in January that British Steel's finance director, Philip Hampton, was leaving the company to join British Gas. Mr Rennocks, 50, takes over as executive director, finance, at British Steel on 16 July, and will join the board a week later at the conclusion of the annual meeting. There is speculation that Mr Rennocks' departure after six years at PowerGen is linked to his disappointment at not being promoted to managing director at the time of the resignation by the chairman, Sir Colin Southgate.PowerGen's chief executive, Ed Wallis, moves up to executive chairman when Mr Southgate stands down at the annual meeting in July. His duties will be taken on by Deryck King, managing director, who joined the board from ICI in March.At British Steel, Mr Rennocks will be paid a basic salary of pounds 200,000 plus a performance-related bonus worth up to 30 per cent. John Rennocks, finance director of PowerGen, is to leave the electricity generator to take up a similar position at British Steel, writes John Eisenhammer. At present the dividend is covered 2.3 times by earnings but cover could slip closer to two times, analysts believe.National Power began activating plans for a bumper handout to shareholders as a means of defending itself against a potential bid from the Southern Company of Atlanta, Georgia..