Bank drops Dome bid

The bank planned to turn the Dome into a theme park

Japanese bank Nomura International is pulling out of its £105m bid to buy the Millennium Dome.

The bank said on Tuesday that it had been unable to examine vital financial information.

The firm said it had not been given access to a report by accountant PriceWaterhouseCoopers into the Dome's finances.

But a government spokesman said later that defeated bidder Legacy had renewed its interest in the Dome site in the wake of the Nomura pullout.

This was a very difficult decision to make but in the circumstances we had no alternative

Nomura head of principal finance, Guy Hands

Nomura had also said that, by starting ticket discounts, New Millennium Experience Company (NMEC) had broken an agreement made when it was appointed preferred bidder for the Dome.

There were disputes with suppliers to the Dome who were claiming ownership of various Dome assets, Nomura added.

It accused NMEC of failing to keep up the repair and maintenance of the Dome.

Guy Hands, Nomura's head of principal finance, said: "This was a very difficult decision to make but in the circumstances we had no alternative.

"I feel very sorry for the people of Greenwich and particularly for the Dome's employees who face an uncertain future through no fault of their own."

Talks 'progressing'

A spokesman for NMEC said: "We are surprised and disappointed by this development, particularly the stated reasons, which we believe are without foundation."

The company said executive chairman David James had drafted in extra legal and accounting resources to deliver an agreement with Nomura as soon as possible.

The Dome will stay open to the end of the year

NMEC statement

Talks "had been progressing well in an atmosphere of co-operation and goodwill," said the company.

"The Dome will stay open to the end of the year, and the NMEC will run it up to that time. All contractual obligations to staff will be honoured in full," the statement concluded.

Nomura, which prides itself on its history of turning around unprofitable businesses, had planned to turn the Dome into a theme park.

Financial worries

A government spokesman said the Legacy bid would now be reconsidered.

He said: "The government's advisors will be exploring Legacy plc's proposals to build Knowledge City, a high tech business development with a view to further detailed discussion."

Many had thought that Nomura stood to make a healthy profit on the purchase of the Millennium Dome site for £105m, given that it cost close to £800m to build.

Who would buy a used Dome from this government?

Shadow culture secretary, Peter Ainsworth

But last week, the bank complained that it was worried by new figures on the Dome's financial performance.

The attraction has already been bailed out using money advanced to it from the sale to Nomura, but it is possible that cash will now have to be returned.

A spokesman for NMEC told BBC News Online they did not know what would happen to the money.

Shadow culture secretary, Peter Ainsworth, said: "Every time the public is told nothing more can go wrong, it does, and today's news raises serious questions about whether more lottery money will have to go into this project.

"Given that Nomura were denied access to the PriceWaterhouseCooper report and nobody seems to know who owns the Dome's assets, or what they are worth, or what their liabilities are, it is hardly surprising Nomura has pulled out.

"Nobody is going to buy a pig in a poke. Who would buy a used Dome from this government?"