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FirstGroup shares drop 21 percent from West Coast rail contract failure

4 Oct 2012 12:00 AM | Anonymous

FirstGroup has experienced sharp losses from the scrapping of the West Coast rail contract with a fall in shares of 21 percent and £240 million lost in value from the company.

The emergence of serious flaws from the DfT procurement process, removed FirstGroup's position to take over from Virgin in the running of the service in December.

The procurement failure is expected to cost the taxpayer £40 million in compensation to the four shortlisted bidders.

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