But the level of interest at this stage is usually regarded as useful pointer to the outcome. Railtrack looks likely to be sold for a price at the top of the Government's pounds 1.75bn to pounds 1.95bn range, after heavy interest by City institutions. Investors do not appear to have been deterred by the renewed bad publicity about the company in recent days, including advice from Lloyds Bank and NatWest to their private clients that they do not regard Railtrack as a suitable long-term investment. Institutions are believed to have made indicative offers that comfortably oversubscribe their share of the privatisation, and substantial numbers of applications have already been received from private investors, well ahead of the close next Wednesday at noon.The indications are that the government will have no difficulty selling the shares at the top of the 350p to 390p range announced 10 days ago for international investing institutions. Private investors pay 10p a share less.The prices on offer from professional investors will not be confirmed until next Friday afternoon when the international tender offer closes.The present stage is a bookbuilding exercise during which institutions tell SBC Warburg, the global co-ordinator, how much they expect to buy and at what price.The institutions are not committed to their offers until the close and are theoretically entitled to withdraw altogether. "This is not a replacement, it is a positive quantum leap," he said.About 20 people from Rothschild will move to ABN Amro's office at Broadgate, in the City, where ABN Amro Rothschild will be headquartered.Comment, page 19.

It is responsible for the pricing, bookbuilding and distribution of share offerings."The international corporate finance, advisory and sector skills of Rothschild complement the global research, sales and trading capabilities of ABN Amro," said Sir Evelyn de Rothschild, chairman.Bernie Myers, a Rothschild managing director, said the deal gave the bank stronger international distribution than it had with Smith New Court. Speculation continues that more senior defections are impending, pointing to unease within the bank at a perceived lack of direction.Stating that he expected the announcement to stem the criticism, Mr Alt took a defiant stance against the recent leavers and other rumoured departees. "Good luck to them, they can go and be buried in some large investment bank."Equity capital markets is the vital stone in the arch linking a bank's corporate advisory business and the equity sales and research side. The latest to leave was John Bishop, a managing director at Rothschilds and its most senior executive in charge of trading. "It is totally consistent with maintaining our independence while leveraging off our skills in origination."The deal came as Rothschild has been going through a rocky patch, suffering three high level departures in a matter of weeks. The merged entity will draw on Hoare Govett's sales, trading and research, but its corporate broking side will be entirely left out."This is an elegant and sensible solution between two mature groups," said Anthony Alt, Rothschild's chief executive.