[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 6 June 2007, 14:46 GMT 15:46 UK
Ferry deal nets managers millions
A ferry service operating between the Isle of Wight and Southampton has been sold to Prudential for more than 200m.

A handful of directors, the firm declined to confirm how many, will share a personal windfall of 40m.

Red Funnel Ferries runs four high-speed catamarans and three roll-on roll-off vessels between Southampton and Cowes.

The price is double the amount that was paid out when the existing managers took over in a deal with Halifax Bank of Scotland (HBOS) three years ago.

We've managed to make some money from this activity
Tom Docherty, managing director, Red Funnel Ferries

The company said the deal would have no effect on the services provided to passengers, and there would be no change to fares.

Tom Docherty, managing director of Red Funnel Ferries, said: "Basically we've gone to the market place and looked for a cheaper mortgage for the house.

"We've managed to find a better interest rate, a lower-cost mortgage, a longer-term mortgage for the business, which places us in a great position for the future."

Questioned by the BBC on the scale of the management windfall, Mr Docherty said: "Yes, we've managed to make some money from this activity, which is great for the management of the company."

Red Funnel Ferries said the management team had no plans to leave the company having made the profit.

Island ferry company may be sold
12 Apr 07 |  Hampshire
Taxis in dispute with ferry firm
31 Oct 06 |  Hampshire

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific