Amey's £70m PFI disposal

Amey, the troubled construction company involved in the part-privatisation of the London Underground, is close to a £70m disposal that could help steer it away from a financial crisis.

HBOS, the bank formed through the merger of Bank of Scotland and Halifax, is believed to be the front-runner to buy Amey's stakes in private finance initiatives (PFIs). John Laing, the construction firm, is also in the running. The PFI projects include a scheme to build two new stations in London for the British Transport Police and a contract to maintain schools in Edinburgh. However, the move could be pre-empted by a takeover bid for Amey. The company's shares have fallen by 55 per cent since the beginning of last month.

Last week Amey was plunged into a fresh crisis when it revealed that it has had to pull its proposed interim dividend due to a lack of reserves.

HBOS is also a leading creditor of Amey and is in discussions to relax banking covenants on the loans.