Dome deal on track, says Legacy

The sale of London's Millennium Dome remains on track, the British government's preferred bidder said yesterday

The sale of London's Millennium Dome remains on track, the British government's preferred bidder said yesterday. The Legacy consortium, backed by Treasury Holdings, dismissed claims that the deal for the giant structure was on the verge of collapse and insisted it would be finalised on schedule.

"Everything is still on course. We have had plenty of doubters, but if you want to make something successful it seems you have to put up with these sort of things," Legacy spokesman Mr Tim Fallon said.

The British Prime Minister, Mr Tony Blair, summoned Mr John Prescott, his deputy, and Lord Falconer, minister in charge of the Dome, to a meeting in Downing Street as the government attempts to conclude the sale.

Mr Blair asked the ministers for a progress report on Monday ahead of a crucial ministerial meeting this week. There is concern that Legacy's offer, the only bid on the table, does not stand up to scrutiny and will have to be ditched. Mr Blair is keen to keep up the pressure on ministers to finalise a deal and be rid of the Dome, which has dogged Labour since it came to power in 1997.

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Ministers from the four government departments in charge of the sale meet tomorrow. Whitehall insiders said they were most concerned about how many tenants would rent space in the high-technology business park proposed by Legacy, headed by Mr Robert Bourne, a Labour donor and financed by Treasury Holdings.

Legacy yesterday said it had no tenancy agreements with anyone. "It would be madness to sign one until we have finalised the sale," an official said.

And despite earlier indications that Sun Microsystems, the US information technology group, had signed a firm commitment to lease space, the firm has said it agreed to help provide computer infrastructure for start-up groups and would only consider taking up a tenancy in the future.

The government is also worried about how it would share in any excess profits Legacy makes. If those two issues can be resolved, the deal may still proceed. But if Legacy fails to come up with a solution, the deal will be rejected, possibly tomorrow.

Even if Legacy manages to conclude negotiations with ministers, its bid will face independent scrutiny and may still be rejected. If impartial advisers suggest the government would raise more money by knocking down the Dome or selling it to other bidders, the Legacy deal would be dropped.